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Couldsome answer this question pls? An engineering project analyst is contemplating a 3 year project which will require an up-front outlay for equipment of dollar
Couldsome answer this question pls?
An engineering project analyst is contemplating a 3 year project which will require an up-front outlay for equipment of dollar 85,000. It is anticipated that, if there is no inflation, annual revenues from the project will be dollar 60,000 and annual cash expenses will be dollar 25,000 in the first year and rise by 5 percentage per annum. It is estimated that the left-over equipment will fetch dollar 45,000 at the end of 3 years. The equipment is to be depreciated using a CCA of 25 percentages; the corporate tax rate is 30 percentageStep by Step Solution
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