MINUS Cost of acquisition ( net of disposal ) [ DON'T FORGET ANY OPPORTUNITY COSTS , AND CAPITAL GAINS TAX , IF APPLICABLE ] PLUS Present Value of CCA Tax Shield ( IN PERPETUITY ) On cost of acquisition ( net of disposal ) [ Use FORMULA if declining -balance CCA ] There is no CCA on land . PLUS Present Value of INCREMENTAL ( annual ) After - Tax Net Operating Income MINUS Increase in Net Working Capital , if any ( " INVESTMENT IN NW G " ) [If " additional investment . .. " calculate Present Value ] PLUS Present Value of Decrease in Net Working Capital ( " RECOVERY OF NWC " ) PLUS Present Value of Salvage Value ( less capital gains tax , if applicable ) MINUS Present Value of Lost Tax Shield due to Salvage Value ( at LCP ) [ Use FORMULA if declining -balance CCA ]