ACCE Mining is considering a project that will result in cash flows from operations (before taxes and depreciation) of$600,000 at the end of each of the 10 years of the project.The initial investment for this project consist in new machines at the cost of 2 million dollars, with a CCA tax rate of 10%. The machines will be useless after the 10 years life of the project. In addition, in order to operate this machinery, all staff will need to be recertified at the end of the sixth year. While recertification is occurring, the plant will be closed for maintenance for 2 weeks. The cost of the recertification is anticipated to be $470,747. This amount can be expensed when the overhaul occurs.The project requires an increase in inventories for the company of $80,000 and the entire amount will be recouped at the end of the project.ACCE Mining, which has a corporate tax rate of 30%, is financed entirely by equity. ACCE's shareholders demand a return of 12%. Historically they have achieved this return through a mixture of share price appreciation and dividends payments. On average the firm makes dividend payments of $100,000 per year.

ACCE Mining is considering a project that will result in cash flows from operations (before taxes and depreciation) of$600,000 at the end of each of the 10 years of the project.The initial investment for this project consist in new machines at the cost of 2 million dollars, with a CCA tax rate of 10%. The machines will be useless after the 10 years life of the project. In addition, in order to operate this machinery, all staff will need to be recertified at the end of the sixth year. While recertification is occurring, the plant will be closed for maintenance for 2 weeks. The cost of the recertification is anticipated to be $470,747. This amount can be expensed when the overhaul occurs.The project requires an increase in inventories for the company of $80,000 and the entire amount will be recouped at the end of the project.ACCE Mining, which has a corporate tax rate of 30%, is financed entirely by equity. ACCE's shareholders demand a return of 12%. Historically they have achieved this return through a mixture of share price appreciation and dividends payments. On average the firm makes dividend payments of $100,000 per year.

What is the NPV of the project?