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Question #2 (20%): Taxation A Canadian company is considering adding a new product line that needed $80,000 of Class 43 equipment (CCA rate = 30%)

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Question #2 (20%): Taxation A Canadian company is considering adding a new product line that needed $80,000 of Class 43 equipment (CCA rate = 30%) and initial working capital (=the cash amount available for day-to-day operations) of $55,000. The product would have production costs of $79,000 a year and annual revenues of $167,000. The product would be manufactured for five years and then discontinued. The working capital would then be fully recovered at the end of the last year) and the equipment sold for $5,000. Find the equivalent uniform annual worth with MARR = 10% and a rate of taxation t = 29%. TIP: calculate the CTF and CSF first Question #2 (20%): Taxation A Canadian company is considering adding a new product line that needed $80,000 of Class 43 equipment (CCA rate = 30%) and initial working capital (=the cash amount available for day-to-day operations) of $55,000. The product would have production costs of $79,000 a year and annual revenues of $167,000. The product would be manufactured for five years and then discontinued. The working capital would then be fully recovered at the end of the last year) and the equipment sold for $5,000. Find the equivalent uniform annual worth with MARR = 10% and a rate of taxation t = 29%. TIP: calculate the CTF and CSF first

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