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Delta Corporation is considering an investment of $ 4 0 0 , 0 0 0 in a new machine, which belongs to asset class 4

Delta Corporation is considering an investment of $400,000 in a new machine, which belongs to asset class 43 with a CCA rate of 30 percent. The machine is not the only asset in the asset class. The firm's effective tax rate is 40 percent. The company has the following estimates:
Project life
Discount rate (k)
Salvage value
Annual after-tax operating cash flows
Base Case
6 years 10% $50,000 $80,000
Best Case
8 years 8% $60,000 $100,000
Worst Case
4 years 12% $40,000 $60,000
Based on the NPV of each scenario, would you recommend the company to undertake the project if each scenario is equally likely? pleae use BAII calculator

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