Question: Problem 9-27 Project Evaluation (LO2) liana Industries, Inc., needs a new lathe. It can buy a new high-speed lathe for $1.08 million. The lathe will

Problem 9-27 Project Evaluation (LO2) liana Industries, Inc., needs a new lathe. It can buy a new high-speed lathe for $1.08 million. The lathe will cost $38,900 to run, will save the firm $133,100 in labour costs, and will be useful for 11 years. Suppose that for tax purposes, the lathe will be in an asset class with a CCA rate of 25%. Ilana has many other assets in this asset class. The lathe is expected to have a 11-year life with a salvage value of $101,000 The actual market value of the lathe at that time will also be $101,000. The discount rate is 8% and the corporate tax rate is 35%. What is the NPV of buying the new lathe? (Round your answer to the nearest cent.) FOR THIS QUESTION ONLY, YOU MAY FORWARD YOUR EXCEL SPREADSHEET OR ANOTHER DOCUMENT THAT SHOWS YOUR WORK (TO MY SLATE EMAIL ADDRESS) SO I CAN REVIEW IT AND AWARD PARTIAL CREDIT. It must be received by no later than 10:35 AM (no exceptions!). NPV

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