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please do it in 40 minutes please urgently... I'll give you up thumb definitely Question 7 (25 points) [25 Marks] Earthworks is an excavation company

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please do it in 40 minutes please urgently... I'll give you up thumb definitely

Question 7 (25 points) [25 Marks] Earthworks is an excavation company which started its operations in the year 2008. The board of governors set the Minimum Acceptable Rate of Return for the company at 10% after-tax. Due to the nature of their work, Earthworks own equipment which are in CCA class 8 (CCA rate = 20%). For the 5 years following its inception, Earthworks purchased 4 Machines, two of which they ended up selling. The record of their transactions is as summarized below: Tax Year Transaction Dollar Value of transaction 2008 Purchase of Machine A $60,000 2009 Purchase of Machine B $130,000 2010 Sale of Machine A $20,000 2010 Purchase of Machine 0 $80,000 2011 Sale of Machine B $40,000 2012 Purchase of Machine D $75,000 a) What is the remaining Undepreciated Capital cost at the end of year 2012? b) What is the equivalent annual worth of the tax savings associated with these transactions if the corporate tax rate is 40%? (Do not type an answer in the box below, attach all solutions and work as a pdf on the last question) Question 7 (25 points) [25 Marks] Earthworks is an excavation company which started its operations in the year 2008. The board of governors set the Minimum Acceptable Rate of Return for the company at 10% after-tax. Due to the nature of their work, Earthworks own equipment which are in CCA class 8 (CCA rate = 20%). For the 5 years following its inception, Earthworks purchased 4 Machines, two of which they ended up selling. The record of their transactions is as summarized below: Tax Year Transaction Dollar Value of transaction 2008 Purchase of Machine A $60,000 2009 Purchase of Machine B $130,000 2010 Sale of Machine A $20,000 2010 Purchase of Machine 0 $80,000 2011 Sale of Machine B $40,000 2012 Purchase of Machine D $75,000 a) What is the remaining Undepreciated Capital cost at the end of year 2012? b) What is the equivalent annual worth of the tax savings associated with these transactions if the corporate tax rate is 40%? (Do not type an answer in the box below, attach all solutions and work as a pdf on the last question)

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