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New Tech(NT) 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(NT) 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 $10,000 would have to be made initially and be recovered at the end of the project.The equipment CCA rate of 30% half year rule applies would cost $500000. NT estimates that it would be possible to sell the equipment for 20% of its initial value

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