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Question 4 Your corporation is considering whether to undertake a project or not. The project requires the purchase of new tools costing $100,000. The new
Question 4 Your corporation is considering whether to undertake a project or not. The project requires the purchase of new tools costing $100,000. The new tools have a useful life of five years and a CCA rate of 25%. The new tools are estimated to be worth $5,000 at the end of the fifth year. The project is expected to generate $50,000 every year during the five-year period. The tax rate is 30% and the required rate of return is 15%. Should the project be accepted or not? Show your work
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