Please write down the process

Please write down the process

Question 26 (4 points) Jocelyn Corp. is considering a project that requires an initial investment of $250,000; the project life is three years; before-tax cost savings are $140,000 per year; salvage value will be $26,000 when the fixed assets are sold in year 3; the tax rate is 27%; and the discount rate is 14%. Assume there is no change in net working capital, and assume a CCA rate of 20%. a) What is the present value of the CCA tax shield in year 0? (1 mark) b) What are cash flows from assets in years 0-3? (2 mark) c) What is the net present value of the proposed project? Should Jocelyn Corp. accept the project? (1 mark)