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Buhler Industria farm implement manufacturer Management is currently evaluating a proposal to build a plant that will manufacture lightweight tractors Buhilor plans to use a

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Buhler Industria farm implement manufacturer Management is currently evaluating a proposal to build a plant that will manufacture lightweight tractors Buhilor plans to use a cost of capital of 12% to evaluate this project Based on extensive research, it has prepared the following incomplete incremental free cash flow projections (in millions of dollars) Frot Cash Flow (S000,000 Year 0 Years 1-9 Year 10 Revenues 110 00 110.00 Manufacturing expenses (other than depreciation) - 3400 -3400 Marketing expenses -9.00 - 9.00 CCA 2 EBIT Taxes (3536) ? Unlovered not income 2 +CCA 2 2 Using the indirect method requires a separate calculation of the CCA tax shield What is the present value of the CCA tax shield? The present value of the CCA tax Shield is million (Round to two decimal places) 2 2 ? 2 Buhler Industria farm implement manufacturer Management is currently evaluating a proposal to build a plant that will manufacture lightweight tractors Buhilor plans to use a cost of capital of 12% to evaluate this project Based on extensive research, it has prepared the following incomplete incremental free cash flow projections (in millions of dollars) Frot Cash Flow (S000,000 Year 0 Years 1-9 Year 10 Revenues 110 00 110.00 Manufacturing expenses (other than depreciation) - 3400 -3400 Marketing expenses -9.00 - 9.00 CCA 2 EBIT Taxes (3536) ? Unlovered not income 2 +CCA 2 2 Using the indirect method requires a separate calculation of the CCA tax shield What is the present value of the CCA tax shield? The present value of the CCA tax Shield is million (Round to two decimal places) 2 2 ? 2

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