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Longbow Lumber is purchasing a new horizontal resaw at a cost of $390,000. There is an additional $20,000 delivery and installation cost. The machine has
Longbow Lumber is purchasing a new horizontal resaw at a cost of $390,000. There is an additional $20,000 delivery and installation cost. The machine has a capital cost allowance (CCA) rate of 15%. What will be the CCA deduction for year 1? A. $30,750 B. $29,250 OC. $205,000 OD. $195,000 O E. $61,500 Consider a project with the following cash flows: Year 0 1 2 3 4 Cash Flow - 10,000 4000 4000 4000 4000 Assume the appropriate discount rate for this project is 15%. The profitability index for this project is closest to: A. 0.14 OB. 0.22 O C. 0.15 OD. 0.60 E. 0.31
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