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The HamOnt Orchestra is considering replacing its sound equipment. The equipment would cost $900,000 and lower hydro costs by an estimated $250,000 a year. The
The HamOnt Orchestra is considering replacing its sound equipment. The equipment would cost $900,000 and lower hydro costs by an estimated $250,000 a year. The equipment will belong in a 25% CCA class. The required rate of return is 10% and the tax rate is 30%. What is the increase in net income in the FIRST year from this proposed project? a. $137,500
b. $1,12,250
c. $102,500
d. $96,250
e. $92,750
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