Question: Machine price = $ 1 , 8 0 0 , 0 0 0 ; additional inventory requirement = $ 1 5 0 , 0 0
Machine price $; additional inventory requirement $ Cash flows will be generated at year end. Rev $ and grows at percent each year for five years, while Cost $ and grows at percent. At the end of the fiveyear project, the assets can be sold for $ while the additional inventory that was tied up will be released. The applicable CCA rate is percent. The tax rate percent, and RF percent; project beta ; ERM percent. The ending UCC $
Calculate the NPV of the project if the asset class remains open upon termination of the project. Decide whether or not Brigid Co should accept the project. Include the halfyear rule.Brigid Co has the following potential project:
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