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Buhler industries is a farm implement manufacturer. Manogement is currenfy evaluating a proposal to buld a plant that wit manutacture fighteveight tractors. Burler plans to

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Buhler industries is a farm implement manufacturer. Manogement is currenfy evaluating a proposal to buld a plant that wit manutacture fighteveight tractors. Burler plans to use a cost of capital of The relevant CCA rate for the capital expendifures is 10%. Assume assets are never sold. a. For this base-case scenario, what is the NPV of the plant to manufacture lightweight iruchs? assumptions. What is the NPV of this project if revenues are 10\% higher than forecast? What is the NPV of this project if revenues are toW lower than forecast? Uving the indrect method requires a separate calculation of the CCA tax shield. What is the presant value of ne CCA tax stield? The present value of the CCA tax shield is : milion. (Round to two decimal places. a. For this base-case scenario, what is the NPV of the plant to manufacture lightweight tractors? 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 shiold is 5 million. (Round to two decimal places.) a. For this base-case scenario, what is the NPV of the plant to manufacture lightwoight tractors? The NPV is $ million. (Round to two decimal places.) b. Based on input from the marketing department, Buhler is uncertain about its revenue forecast. in partioular, mansgement would like to examine the sorisimity of the NPV to the revenut assumptions. 1. What is the NPV of this project if revenues are 10% higher than forecas? The NPV is 3 mallion. (Round to two decimal places) 2. What is the NPV if revenues are 10% lower than forecast? The NPV is 1 milion, (Round to two decimal places.)

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