Question
Use this information to calculate the viability of the project: Investment Cost $ 730,000 Cash Flows per year $ 200,000 Tax rate 40% Project Life
Use this information to calculate the viability of the project:
Investment Cost $ 730,000
Cash Flows per year $ 200,000
Tax rate 40%
Project Life Length 5 y
CCA Rate 20%
Required return 8%
Hint: Don't forget to calculate PVCAATS
Make sure to indicate whether you accept or reject the project, and why.
SHOW your WORK 8m
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
