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Consider a firm that has invested in a 5-year project. It faces a 40% corporate tax rate and its investment belongs to the CCA class

Consider a firm that has invested in a 5-year project. It faces a 40% corporate tax rate and its investment belongs to the CCA class with a 30% depreciation rate. A new "take care of equipment" program implemented by the firm allowed it to increase the salvage value of the equipment by $20,000. What was the effect of this program on NPV if the project's discount rate is 12%?

Question 19 options:

$6,809

$8,106

$9,714

$11,349

Consider a firm that has invested in a 5-year project. It faces a 40% corporate tax rate and its investment belongs to the CCA class with a 30% depreciation rate. By how much the NPV of the project will increase if the firm would be able to negotiate a $20,000 discount on the equipment it bought? Assume that the salvage value of the equipment stays the same. Assume also that the project's discount rate is 12%.

Question 20 options:

$11,349

$12,000

$10,714

$14,592

Consider a firm that has invested in a 5-year project. It faces a 40% corporate tax rate and its investment belongs to the CCA class with a 30% depreciation rate. By how much the NPV of the project will increase if the firm were able to use its inventory more efficiently and reduce the required NWC by $20,000? Assume the project's discount rate is 12%.

Question 21 options:

$9,013

$8,651

$12,000

$9,974

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