Question
Today ABC Corp. starts a project that requires it to invest in new equipment of $821,000. Doing so will earn ABC pre-tax cash flows of
Today ABC Corp. starts a project that requires it to invest in new equipment of $821,000. Doing so will earn ABC pre-tax cash flows of $136,000 annually over 6 years. The equipment has a salvage value of $271,000. ABC's cost of capital is 8.40%, and its tax rate is 30%. The equipment falls into the 25% CCA class (half year rule applies). What is the NPV of the project?
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The Changing Geography Of Banking And Finance
Authors: Pietro Alessandrini ,Michele Fratianni ,Alberto Zazzaro
1st Edition
1441947205, 978-1441947208
