Question: Problem 9-18ab Question Help Buhler Industries is a farm implement manufacturer. Management is currently evaluating a proposal to build a plant that will manufacture lightweight

 Problem 9-18ab Question Help Buhler Industries is a farm implement manufacturer.

Problem 9-18ab Question Help Buhler Industries is a farm implement manufacturer. Management is currently evaluating a proposal to build a plant that will manufacture lightweight tractors. Buhler plans to use a cost of capital of 12% to evaluate this project. Based on extensive research, it has prepared the following incomplete incremental free cash flow projections (in millions of dollars): Free Cash Flow ($000,000s) Year 0 Years 1-9 Year 10 Revenues 95.00 95.00 - Manufacturing expenses (other than depreciation) - 36.00 - 36.00 - Marketing expenses -8.00 -8.00 - CCA ? ? = EBIT ? ? - Taxes (35%) ? ? = Unlevered net income ? ? Using the indirect method requires a separate calculation of the CCA tax shield. What is the present value of the CCA tax shield? The present value of the CCA tax shield is $ million. (Round to two decimal places.) Problem 9-18ab Question Help Buhler Industries is a farm implement manufacturer. Management is currently evaluating a proposal to build a plant that will manufacture lightweight tractors. Buhler plans to use a cost of capital of 12% to evaluate this project. Based on extensive research, it has prepared the following incomplete incremental free cash flow projections (in millions of dollars): Free Cash Flow ($000,000s) Year 0 Years 1-9 Year 10 Revenues 95.00 95.00 - Manufacturing expenses (other than depreciation) - 36.00 - 36.00 - Marketing expenses -8.00 -8.00 - CCA ? ? = EBIT ? ? - Taxes (35%) ? ? = Unlevered net income ? ? Using the indirect method requires a separate calculation of the CCA tax shield. What is the present value of the CCA tax shield? The present value of the CCA tax shield is $ million. (Round to two decimal places.)

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