From time to time, governments at various levels provide tax incentives to promote capital investments in key

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From time to time, governments at various levels provide tax incentives to promote capital investments in key industries. The Province of Manitoba introduced the Mining & Exploration Tax Incentives program in the form of bonus tax credits (on top of normal deductions). Information on this program is found in the following release: gov.mb.ca/ctt/invest/busfacts/ govt/min_taxc.html. Explain how this incentive will affect new exploration activity. Is it possible that such tax incentives alter the NPV of a project?

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Fundamentals of Corporate Finance

ISBN: 978-0071051606

8th Canadian Edition

Authors: Stephen A. Ross, Randolph W. Westerfield

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