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P6.2 You have a five-year project. The revenue for the project in the first year is $810,000, continuing with an increase of 10% each year
P6.2 You have a five-year project. The revenue for the project in the first year is $810,000, continuing with an increase of 10% each year for the remainder of the project. The labour and material costs are 50% of the revenues in each year, and other costs are $60,000 per year. You bought the equipment necessary for the project at the start of the project for $1,132,000. The equipment is in Class 43 for the CCA. MARR=11%. The tax rate is 35%. Assume a zero salvage value at the end of the project. Should you choose the project based on the NPV and IRR criteria
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