Crystal Water, a community committed to raise awareness towards water pollution in big cities, permission approved to
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Question:
Crystal Water, a community committed to raise awareness towards water pollution in big cities, permission approved to install CCC an innovation water cleaning device. Administrative costs to obtain the permission were RM and were incurred in the previous year.
The device, that will be acquired and installed today, costs RM with annual operating expenses of RM and is expected to operate for two years. It will be depreciated in four years using the straightline depreciation method. The salvage value before taxes of the device will be RM two years from now.
The total waste collected over a year can be recycled and sold at RMrevenues Working capital is of next year revenues. The discount rate is and the marginal tax rate is
Calculate the projects;
i Free cash flow from year to
marks
ii Net present value NPV
marks
Related Book For
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey
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