CAPITAL BUDGETING WITH INCOME TAXES Montreal Paper Company must purchase a paper sorter to replace its existing one on lanuary 1, 2022 This is an essential investment because manual sorting is too demanding and causes physical problems for employees. Two models that would adequately meet the company's needs are the price and Allen models Information related to each model includes: 7 . $ Price 51.600 $ 20,000 $ 5 10 $ Allen 103,200 25,000 10,000 8 40,000 Cost of machines Working Capital needed Salvage value Life-years Annual savings of operating costs CCA Income Tax rate After-tax cost of capital 19 24,000 $ $ 30% 25% 12N 14 15 16 1 i Required: Al Compute the after tax net present value, internal rate of return, payback periods and profitability index for both models using the total-cost approach. Price Anna Net Cash 1-1.22 Allen YEAR YEAR 21 22 23 Flow Annual Ne Cash Flor 1-1-22 A Compute the after-tax net present value, internal rate of return paytack periods and profitability Index for both models using the total cost approach Price Allen YEAR Annual Net Cash Flow YEAR Anual Net Carlo 1-1-22 12-31-22 12-31-23 12-31-24 12-31-25 12-31-26 12-31.27 12-31-28 12-31-29 12-31-29 1-1-22 12-31-22 12-31-23 12-31-24 12-31-25 12-31-25 12-31-27 12-31-28 12-31-29 12-31-29 CCAS YEAR ADO'N CCA SCHEDULE -50% BASIS OPEN UCC CCA CCA RATE YEAR END UCC -50% OPEN UCC ADON 2022 2023 2024 2022 2023 2024 2025 2005 2027 2028 2029 2029 2025 2027 2020 2029 CALCULATE CASH FLOW AFTER TAX (CFAT CALCULATE CASH FLOW AFTER TAX CFA CFAT Paybach YEAR 11-32 12-01-22 12-31-23 12-31-24 12:31-25 12-31-20 12.31-27 12-31-20 12-01-29 12.31:29 YEAR 1-1-22 12-01-22 12-31-23 12-31-24 12-31-25 12-31-26 12-31-27 12-01-28 12-31-29 12-31-29 Net Print Value Press In Rate of Return of Nam Payback you Paytrack your Profitability Index Profitabindex Westent would you recommend? why have you made this recommendation CAPITAL BUDGETING WITH INCOME TAXES Montreal Paper Company must purchase a paper sorter to replace its existing one on lanuary 1, 2022 This is an essential investment because manual sorting is too demanding and causes physical problems for employees. Two models that would adequately meet the company's needs are the price and Allen models Information related to each model includes: 7 . $ Price 51.600 $ 20,000 $ 5 10 $ Allen 103,200 25,000 10,000 8 40,000 Cost of machines Working Capital needed Salvage value Life-years Annual savings of operating costs CCA Income Tax rate After-tax cost of capital 19 24,000 $ $ 30% 25% 12N 14 15 16 1 i Required: Al Compute the after tax net present value, internal rate of return, payback periods and profitability index for both models using the total-cost approach. Price Anna Net Cash 1-1.22 Allen YEAR YEAR 21 22 23 Flow Annual Ne Cash Flor 1-1-22 A Compute the after-tax net present value, internal rate of return paytack periods and profitability Index for both models using the total cost approach Price Allen YEAR Annual Net Cash Flow YEAR Anual Net Carlo 1-1-22 12-31-22 12-31-23 12-31-24 12-31-25 12-31-26 12-31.27 12-31-28 12-31-29 12-31-29 1-1-22 12-31-22 12-31-23 12-31-24 12-31-25 12-31-25 12-31-27 12-31-28 12-31-29 12-31-29 CCAS YEAR ADO'N CCA SCHEDULE -50% BASIS OPEN UCC CCA CCA RATE YEAR END UCC -50% OPEN UCC ADON 2022 2023 2024 2022 2023 2024 2025 2005 2027 2028 2029 2029 2025 2027 2020 2029 CALCULATE CASH FLOW AFTER TAX (CFAT CALCULATE CASH FLOW AFTER TAX CFA CFAT Paybach YEAR 11-32 12-01-22 12-31-23 12-31-24 12:31-25 12-31-20 12.31-27 12-31-20 12-01-29 12.31:29 YEAR 1-1-22 12-01-22 12-31-23 12-31-24 12-31-25 12-31-26 12-31-27 12-01-28 12-31-29 12-31-29 Net Print Value Press In Rate of Return of Nam Payback you Paytrack your Profitability Index Profitabindex Westent would you recommend? why have you made this recommendation