what is the value of NPV?

I have question on calculating CCA tax shield. UCC old should be add to the current value of old machine or replace the current value of old machine?

Transcribed Image Text:

Summary of relevant inputs New equip $18,050,000 Old equip $3,400,000 Salvage value of new Salvage value of old UcC of old $1,050,650 $0 $3,700,000 Increase in inventory $240,000 Revenue $550,000 Op.costs saving $3,875,000 d old 28% d new 35% 30% 13% Summary of relevant inputs New equip $18,050,000 Old equip $3,400,000 Salvage value of new Salvage value of old UcC of old $1,050,650 $0 $3,700,000 Increase in inventory $240,000 Revenue $550,000 Op.costs saving $3,875,000 d old 28% d new 35% 30% 13%

Answer rating: 100% (QA)

Answer Amount Calculation of Cash inflow of New Machine Year 0 New Machine 18050000 ... View the full answer