Question: need answer for scenario 1 The initial cash outlay at Time 0 is simply the cost of the new equipment, $15,000,000 and the confederation's required
need answer for scenario 1
The initial cash outlay at Time 0 is simply the cost of the new equipment, $15,000,000 and the confederation's required return of 12 percent. The marketing study and the research and development are both sunk costs and should be ignored. (Assuming CCA class is 43, the CCA rate of 30 percent and corporate tax is 35 percent). Required: Calculate OCF from the above information. Changes in NWC can be calculated as: Required: The payback period The profitability index The project IRR The project NPV
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