Question
new tech is looking to expand its business. the new business would generate 600000 per year in sales over the next 5 years. annual costs
new tech is looking to expand its business. the new business would generate 600000 per year in sales over the next 5 years. annual costs would increase by 200000, an investment in working capital of 10000 would have to made initially (and be recovered at the end of the project), the equipment would cost (CCA rate of 30%, half year rule applies) 500000.NT estimates that it would be possible to sell the equipment for 20% of initial value at the end of 5 years. if NTs cost of capital is 10% and its tax rate is 25%, what is the NPV of this project?
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