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CathFoods will release a new range of candies which contain antioxidants. New equipment to manufacture the candy will cost $2 million. The new equipment falls
CathFoods will release a new range of candies which contain antioxidants. New equipment to manufacture the candy will cost $2 million. The new equipment falls under asset class 43 and has a capital cost allowance (CCA) rate of 30%. It is expected that the range of candies will bring in revenues of $4 million per year for five years with production and support costs of $1.5 million per year. If CathFoods' marginal tax rate is 35%, what are the incremental free cash flows in the first year of this project?
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