Glenora Inc. is considering the following project: The equipment has a 4-year project life. This equipment...

 

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Glenora Inc. is considering the following project: The equipment has a 4-year project life. This equipment falls into class 43 with a CCA rate of 30% and would have zero salvage value. The firm has other assets in asset class 43. No new working capital would be required. Revenues and cash operating costs are expected to be constant over the project's 4-year life. What is the project's NPV? 8.0% WACC $80,000 Net investment cost $70,000 Sales revenues, each year $25,000 Cash operating costs 20.0% Tax rate Glenora Inc. is considering the following project: The equipment has a 4-year project life. This equipment falls into class 43 with a CCA rate of 30% and would have zero salvage value. The firm has other assets in asset class 43. No new working capital would be required. Revenues and cash operating costs are expected to be constant over the project's 4-year life. What is the project's NPV? 8.0% WACC $80,000 Net investment cost $70,000 Sales revenues, each year $25,000 Cash operating costs 20.0% Tax rate