Question: Question 2 (20 marks) Gymbolee Line.com is considering opening a new wilderness trail for tourists. The trail will require $120,000 in fixed assets plus an
Question 2 (20 marks) Gymbolee Line.com is considering opening a new wilderness trail for tourists. The trail will require $120,000 in fixed assets plus an additional $40,000 in net working capital. The project is expected to produce revenue of $140,000 annually. The annual expenses are projected at $85,000. The assets associated with the project belong in a 25% CCA class. The tax rate is 34%. The required return is 12%. The project expects to last for 4 years. 1) Find the Project's Total Cash Flows for years 0, 1, 2, 3 and 4 2) Find the NPV for the project. 3) Find the IRR for the project. Activate Windows
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
