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Please, I need a STEP BY STEP solution, not in a spread sheet, ASAP! thanks!!! The Whilst Co. is analyzing a project that has projected

Please, I need a STEP BY STEP solution, not in a spread sheet, ASAP! thanks!!!image text in transcribed

The Whilst Co. is analyzing a project that has projected sales of $230,000 per year and costs of $110,000 per year. The project requires an initial up front investment in inventory of $15,000 plus another $28,000 in accounts receivable. Fixed assets of S120,000 are needed and belong in a 30% CCA class. Assume that the asset class will remain open. Accounts payable will increase by $36,000. An interest expense of S11,000 will be incurred annually. The project has a life of 4 years. At the end of the four years, the equipment has an estimated market value of $40,000. The company has a cost of capital of 14% and is in the 40% marginal tax bracket. Assume that net working capital will be recovered at the end of the project and that the half-year rule is in effect. 1. What is the present value of the after-tax operating cash flow ignoring the impact of depreciation? 2. What is the present value of the CCA tax shield? 3. What is the total amount of CCA in the first two years? 4. What is the present value of the net investment in net working capital including recapture? hat is the net present value of the project

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