costs of $150,000 per year. Research and develop cost of $1,900,000. The R&D festing facilities at a further cost of 10.000 p o palanma General Wireless has spent Building the headquarters will cost $4,000.00 0.000 in the descono For capital budgeting purposes, calculate the poet's 4. Initial cost b Annual cash flows before tax 11-3 Marine Technologies has identified a project that will lower New Project 510,000 per year for 5 years. The equipment costs laperating installation and Analysis and there is an initial investment in net operating working capital on The expected salvage value in 5 years. Marine Technologies operates at break even taxes. If the company's cost of capital is 10, what is the project's NEV? 11-7 A company has purchased a piece of equipment for 510000 that has year and CCV no salvage value. The company's tax rate is 30% and its cost of capitalis 105 What is the present value of the CCA tax shield if the equipment has 20 de balance CCA rate? dignore the half year rule. b. What is the present value of the CCA tax shield if the CCA 20 straight line Intermediate C. What accounts for the difference in the two present values? Problems 8-16 01-8) Assume the following information for Project X: Initial investment Project Life 550,000 8.000 Annual after-tax cash flows: Salvage value: If the project's internal rate of return is 12.5%, what must be the life of the project to the nearest year) haw mas Cena wino in ponducts The muletten the W mungoduce the . date ob manuacharing the product. The wody is expected to see Osts $130.000 per year. Research and development on the new photo 1 yuan cost of 1,The Douboud anderlampe General Wire spent .000 in the snow at h un Building the beadquarters will paint pu b ert's Anashows before - Marine Technologias identified prope that will lo o perations coste N e sto per year for years. The cat c o stano and training Analyst and there is an initial investment in operating u p ital of the expected salvage value in S an Marine Technologies prates at bevakn il payene the company's cost of capital is what is the poor 11 A company has purchased a piece of equipment for that has a year and CCV no g e value. The company's tax rate is 30% and its cost of capital 105 What is the present value of the CCA ne shid if the pipment has a 20 de balance CCA rate? dance the half yew rule What is the present value of the CCA I Shield if the CCA rate is a stra Infermedialec What accounts for the difference in the two pewn values Problems 8-16 01-8 Assume the following indormation for Project Project Life Initial investment 550, A latex cash im $9.000 Salvace value If the project's internal rate of return is 12.55, what must be tw We of the projecte nearest year