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hi pls i need the answer asap Help Save Albatross Airlines is evaluating the acquisition of a new plane. Its price is $40,000. quifies for
hi pls i need the answer asap
Help Save Albatross Airlines is evaluating the acquisition of a new plane. Its price is $40,000. quifies for a government grant to reduce its capital cost by $2.400. It will be in CCA class 8 (20%). Purchase of the new plane would require an increase in not working capital by $2.000, before tax revenues by $20.000 per year and operating costs by $5,000 per year. The plane will be used for 3 years and then be sold for $25,000. The firm's marginal tax rate is 35%, and the project's cost of capitalis REQURIED: COMPLETE THE FOLLOWING TABLE (Round all answers to the nearest dollar) Year o Year 1 Year 2 Year Purchase Price Working Capital Net Revenue Salvage Value CCA Tax Shield Lost Tax Shield Totals PV of Cashflows NPV Do you accept this project? (Click to select) Step by Step Solution
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