Finance $4010$

Chapter $12$ The Capital Budgeting Decision

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$4.$A$.$ Martin's Body$-$Heat Powered MP$3$ Players are taking the market by storm. They are considering expanding their production facility. The new equipment will cost $$660,000$ and is subject to a CCA rate of $20\%.$ They expect to use the equipment for $4$ years and salvant will be $$140,000$ for time. Incremental income from the new investment wals an immed each of the $4$ years. The new investment will also requate of the project's life. They have a $35\%$ tax rate and and and ind a Prepare a thorough NPV analysis of the investment and indicate whether or not it is profitable.

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Finance $4010$

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