recast Expected to take me 25 minutes um bola specialises in roodworking in the Greater Toronto Area Ir's customers pay membership fees on an annual basis who miley Atweitem of the choice from the company catalogue once a year. The company works with wood and leather made hughed for pro doctoris members all over North America. The company is considering investing od hard machine to improve the quality of its muture products. Details about the machine investment are as follows: Cast of machine S 500,000 sal working capital required $200.000 CCA rate 2096 Depoul va $ 120.000 harfi se 14 The expected improvements from the new machine would allow for an increase in membership Fee The CFO expects pre-tex cash flows from the investment in the first five years to be as shown in the table below M 2022 480,000 78,000 Tears Mncrease in Membership Rereme Increase in Membershup Service Costs 2023 390,000 85,000 2024 710,000 92.000 2025 $20.000 95.000 2026 980.000 105.000 19 The company is subject to a 40% tax rate and has a required rate of return of 15% for all investment projects, Required: 2. The CFO has asked you to recalculate the NPV of the investment using the real rate of return fears 3 Initial recaptal Membership Revenue Membership Service Costs Pre-tax cash flow al after-tax cash flows minal disposal value minal networking capital recovery cash flow est valde factor valoe of yearly cash flow CCA tax shield The moment for the CFO pre-tax canh Bow from the ment in the first 2024 710,000 92.000 980.000 105,000 820.000 95.000 2023 390,000 $5,000 2022 480.000 78,000 War Intrane Mine Revenge Menbership Service Costa 21 The subject to a 10% tax rate and as a required rate of return of 15% for all investment projects, Kri 2 The CFO Sed you to recalculate the NPV of the investment using the real rate of return 2 Year final working capital 31 Membershup Revenue 31 Membership Serse Corte Pre-tax cash flow Terms 34 Anafer tax cash flows Terminal deposal value Terminal net-working capital recovery Net cash flow Presentale factor Present value of yearly cash flow PV of CCA tax shield PM 47 PV of CCA tax shield formula PV tus sueldos CCA-[(CAT) (4+1)*((1+0.51% (1+))}-{(CSAT) (4-1))*(1/((1=1) n))] 45 As Space Left for your Rough Working L. 1 CAT CDT det 10.5 cap al money Notes wel alcachon MCCA tar old of CCA sind formula PV ta shield on CCA-CD (84)(1+0 SXCI+-f((SIT) (0-1)(1/((1+r) n)] Space Left for your Rough Working COT - 50 NOS 3 11 41-0.50 (1) PV of initialisment tax shield ca ( do 31) SOT 59 der 101) PV of salge value tax shoeld A1 (SAT) (dr) (1/((1+r))) PV of tax held What is your recommendation for the company What is the reason for your recommendation recast Expected to take me 25 minutes um bola specialises in roodworking in the Greater Toronto Area Ir's customers pay membership fees on an annual basis who miley Atweitem of the choice from the company catalogue once a year. The company works with wood and leather made hughed for pro doctoris members all over North America. The company is considering investing od hard machine to improve the quality of its muture products. Details about the machine investment are as follows: Cast of machine S 500,000 sal working capital required $200.000 CCA rate 2096 Depoul va $ 120.000 harfi se 14 The expected improvements from the new machine would allow for an increase in membership Fee The CFO expects pre-tex cash flows from the investment in the first five years to be as shown in the table below M 2022 480,000 78,000 Tears Mncrease in Membership Rereme Increase in Membershup Service Costs 2023 390,000 85,000 2024 710,000 92.000 2025 $20.000 95.000 2026 980.000 105.000 19 The company is subject to a 40% tax rate and has a required rate of return of 15% for all investment projects, Required: 2. The CFO has asked you to recalculate the NPV of the investment using the real rate of return fears 3 Initial recaptal Membership Revenue Membership Service Costs Pre-tax cash flow al after-tax cash flows minal disposal value minal networking capital recovery cash flow est valde factor valoe of yearly cash flow CCA tax shield The moment for the CFO pre-tax canh Bow from the ment in the first 2024 710,000 92.000 980.000 105,000 820.000 95.000 2023 390,000 $5,000 2022 480.000 78,000 War Intrane Mine Revenge Menbership Service Costa 21 The subject to a 10% tax rate and as a required rate of return of 15% for all investment projects, Kri 2 The CFO Sed you to recalculate the NPV of the investment using the real rate of return 2 Year final working capital 31 Membershup Revenue 31 Membership Serse Corte Pre-tax cash flow Terms 34 Anafer tax cash flows Terminal deposal value Terminal net-working capital recovery Net cash flow Presentale factor Present value of yearly cash flow PV of CCA tax shield PM 47 PV of CCA tax shield formula PV tus sueldos CCA-[(CAT) (4+1)*((1+0.51% (1+))}-{(CSAT) (4-1))*(1/((1=1) n))] 45 As Space Left for your Rough Working L. 1 CAT CDT det 10.5 cap al money Notes wel alcachon MCCA tar old of CCA sind formula PV ta shield on CCA-CD (84)(1+0 SXCI+-f((SIT) (0-1)(1/((1+r) n)] Space Left for your Rough Working COT - 50 NOS 3 11 41-0.50 (1) PV of initialisment tax shield ca ( do 31) SOT 59 der 101) PV of salge value tax shoeld A1 (SAT) (dr) (1/((1+r))) PV of tax held What is your recommendation for the company What is the reason for your recommendation