Mecha Industries is considering a new project. Prior to making this decision the company hired a consultant, at a cost of $21,300, to determine the viability of this new project. The project will require $214,700 for the purchase of the new machine. There will be $14,150 in delivery charges and $1,900 will be spent on a technician to calibrate the machine. The new project will require an additional $1,250 in inventory, $1,430 in accounts receivables and accounts payable is expected to increase by $930. The new machine belongs in a 30% CCA class. At the end of the project, in 5 years time, the machine can be sold for $58,950. The net working capital will return to its original levels at the end of the project. The project is expected to generate additional revenues of $37,100 and expenses are expected to increase by $3,040. The tax rate is 35% and the required rate of return is 15%.

What is the present value of the terminal cash flows?

What is the capital cost allowance in the first year?

What is the present value of the After tax operating revenues?