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has prepared the following incomplete incremental free cash flow projections ( in millions of dollars ) : The relevant CCA rate for the capital expenditures
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?
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.
a For this basecase scenario, what is the of the plant to manufacture lightweight
tractors?
The is $ million. Round to two decimal places.
b Based on input from the marketing department, Buhler is uncertain about its revenue forecast. In particular, management would like to examine the sensitivity of the to the revenue assumptions.
What is the NPV of this project if revenues are higher than forecast?
The is $ million. Round to two decimal places.
What is the if revenues are lower than forecast?
The is $ million. Round to two decimal places.
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