U POINTS Problem 9-27 Project Evaluation (LO2) llana Industries, Inc., needs a new lathe. It can buy a new high-speed lathe for $0.96 million. The lathe will cost $36,700 to run, will save the firm $133,300 in labour costs, and will be useful for 11 years. Suppose that for tax purposes, the lathe will be in an asset class with a CCA rate of 25% llana has many other assets in this asset class. The lathe is expected to have a 11 year life with a salvage value of $92,000 The actual market value of the lathe at that time will also be $92,000. The discount rate is 12% and the corporate tax rate is 35% What is the NPV of buying the new lathe? (Round your answer to the nearest cent.) FOR THIS QUESTION ONLY, YOU MAY FORWARD YOUR EXCEL SPREADSHEET OR ANOTHER DOCUMENT THAT SHOWS YOUR WORK TO MY SLATE EMAIL ADDRESS) SO I CAN REVIEW IT AND AWARD PARTIAL CREDIT. It must be received by no later than 10:35 AM (no exceptions!), NPV SL You are operating an old machine that is.. Yo nod inwestod to produce a chow of 5.000 chofers before it is You can replace with a new machine that cous S20000 mm prowcow of 100 a you for wars The companyies a tocco foron replacement de Solderece od noche? NOTE FM d H B O Do not plece old machine higher NV Ocelent men of the new moches 516309 matthewyor new machines 55.000 Do notre cos, the equivalent out of the new meches $3.60 O Don the couvelet er uity of the new machine $2.925 U POINTS Problem 9-27 Project Evaluation (LO2) llana Industries, Inc., needs a new lathe. It can buy a new high-speed lathe for $0.96 million. The lathe will cost $36,700 to run, will save the firm $133,300 in labour costs, and will be useful for 11 years. Suppose that for tax purposes, the lathe will be in an asset class with a CCA rate of 25% llana has many other assets in this asset class. The lathe is expected to have a 11 year life with a salvage value of $92,000 The actual market value of the lathe at that time will also be $92,000. The discount rate is 12% and the corporate tax rate is 35% What is the NPV of buying the new lathe? (Round your answer to the nearest cent.) FOR THIS QUESTION ONLY, YOU MAY FORWARD YOUR EXCEL SPREADSHEET OR ANOTHER DOCUMENT THAT SHOWS YOUR WORK TO MY SLATE EMAIL ADDRESS) SO I CAN REVIEW IT AND AWARD PARTIAL CREDIT. It must be received by no later than 10:35 AM (no exceptions!), NPV SL You are operating an old machine that is.. Yo nod inwestod to produce a chow of 5.000 chofers before it is You can replace with a new machine that cous S20000 mm prowcow of 100 a you for wars The companyies a tocco foron replacement de Solderece od noche? NOTE FM d H B O Do not plece old machine higher NV Ocelent men of the new moches 516309 matthewyor new machines 55.000 Do notre cos, the equivalent out of the new meches $3.60 O Don the couvelet er uity of the new machine $2.925