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Show all the calculations properly! 2. (30 Marks) BC Power has just purchased a $0.5 million turbine. The turbine will allow it to produce 10

Show all the calculations properly!

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2. (30 Marks) BC Power has just purchased a $0.5 million turbine. The turbine will allow it to produce 10 000 kilowatt hours (KW/H) of electricity per day for twenty years. Afterwards the turbine's scrap value is expected to be negligible. Current price of electricity is $0.06/KWH. Operating costs of the turbine are $100 000 per year. Now BC Power pays a 40% corporate tax rate on its annual income. Depending on the outcome of the provincial elections, it is expected that the tax rate can either increase by 10% or decrease by 10%. Given this information and assuming a 5% annual interest rate and a 20% CCA rate, perform a sensitivity analysis on the company's after-tax prot in the turbine's rst year of operation with respect to the expected changes in the corporate tax rate

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