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What is the after-tax net present value of this machine. Hint: use CTF and CSF The firm Mandeep is working for during their co-op term

What is the after-tax net present value of this machine. Hint: use CTF and CSF

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The firm Mandeep is working for during their co-op term is switching its fleet of vehicles to zero- emissions vehicles (ZEV), and Mandeep is tasked with performing a complete tax calculation on the net present value (NPV) of the purchase of a ZEV. . Assume all values and rates given below are nominal, so you don't have to worry about adjusting them for inflation. Your firm's before-tax MARR is 6.8% per year.4 The relevant tax rate is t = 27% (15% federal + 12% B.C.) . It is appropriate to use the usual rule of thumb to calculate the after-tax MARR. . The firm will buy the ZEV on January 1, 2023, and will sell it on January 1, 2028. The initial cost of the ZEV is $51,495.005 . The ZEV is expected to provide the company yearly "income" of $1,250 in the form of fuel & maintenance savings every year. . The resale value of a ZEV falls by $7,500 every year (so that on January 21, 2024, the resale value would be $51,495 - $7,500 = $43,995, and so on). . The ZEV counts as a Class 54 good, so CRA-mandated depreciation rate for tax purposes is d=30% per year.$

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