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evaluate this project. Based on extensive research, it has prepared the following incomplete incremental free cash flow projections ( in millions of dollars ) :
evaluate this project. Based on extensive research, it has prepared the following incomplete incremental free cash flow projections in millions of dollars:
The relevant CCA rate for the capital expenditures is Assume assets are never sold.
a For this basecase scenario, what is the NPV of the plant to manufacture lightweight tractors?
What is the NPV of this project if revenues are higher than forecast? What is the NPV of this project if revenues are lower than forecast?
Using the indirect method requires a separate calculation of the CCA tax shield. What is the present value of the CCA tax shield?
The present value of the CCA tax shield is $ million. Round to two decimal places.
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