Question: Refer to the information in the preceding problem, but now assume that the tax rate is 30% and that you are not ignoring taxes. Equipment

Refer to the information in the preceding problem, but now assume that the tax rate is 30% and that you are not ignoring taxes.
Equipment is subject to 20% CCA rate declining balance for income tax purposes.
REQUIRED
1. Calculate the NPV of the project without inflation.
2. Calculate the NPV of the project with inflation.
3. Should Cost-Less buy the new cash registers?

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1a Initial equipment investment 600000 b Annual cash flow from operations 140000 Deduct income tax p... View full answer

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