CHAPTER 9 REVIEW QUESTIONS 1. Case Inc. is considering a six-year project to improve its production efficiency. The machine is estimated to provide $135,000 in annual cost savings before taxes. The project would require the purchase of a new assembly machine for $500,000. The salvage value of $50,000 at the end of the project. The machine will also require an initial machine is a Class 10 asset for tax purposes with a CCA rate of 30% and will also have a investment in inventory (NWC) of $20,000, which will be recovered at the end of the project. The corporate tax rate is 40% and the discount rate is 10%. i) What is the NPV of the project?