the present value of the CCA tax shield is $_ million (round to two decimal places)

a) for this base case scenario, what is the NPV of the plant to manufacture light weight tractors? The NPV is ___ million (round to two decimal places)

b)based on input from the marketing department, Buher is uncertain about its revenue forecast. In particular, management would like to examine the sensitivity of the NPV to the revenue assumptions.

1) what is the NPV of this project if revenues are 10% higher than forecast? __ million (round to two decimal places)

2) what is the NPV if they are 10% lower than forcast? ___ million (round to two decimal places)

Buhler Industries is a farm implement manufacturer. Management is currently evaluating a proposal to build a plant that will manufacture lightweight tractors Buhler plans to use a cost of capital of 12% to evaluate this project. Based on extensive research, it has prepared the following incomplete incremental free cash flow projections in millions of dollars): Free Cash Flow (5000,000) Year o Years 1-9 Year 10 Revenues 112.00 112.00 - Manufacturing expenses (other than depreciation) -4000 - 40.00 - Macketing expenses -0.00 -8.00 2 - CCA 7 7 EBIT - Thistes (35%) Unlovered not income + Using the indirect method requires a separate calculation of the CCA tax shield. What is the present value of the CCA a shield? The present value of the CCA tax child is million, (Round to two decimal places) 2 Unlovered net income - CCA - Increases in net working pital -5.00 -5.00 -Captal expenditures -100.00 -Continuation value 11.00 Free cash low - 140.00 ? > The rolevant CCA rate for the capital expenditures is 10%. Assumes are never sold a. For the best sonno what is the NPV of the plant to manufacture lightweight tractor? b. Based on input from the marketing department Butter is uncertain about its revenge forect in particular, management would like to examine the sensitivity of the NPV to the revenue sumption. What is the NPV of this project it revenues are 10% higher than forecast? What is the NPV of this projectif revenues 10% lower than forecast? Using the indirect method requires a separate calculation of the CCA x Shield What is the present value of the CCA tax thield? The present value of the CCAS e milion Round to two decimes places)