Sylvan motors is examining a new project. The new project would require Sylvan motors to build a
Question:
Sylvan motors is examining a new project. The new project would require Sylvan motors to build a new factory. The factory would last approximately 20 years. The land would cost $1.6 million and the building would cost $6.5 million. Production equipment worth $8 million would also have to be acquired. It was estimated that, in 20 years, the land would be worth $2.5 million and the building $2.25 million in today's dollars. The equipment would have a negligible salvage value. The building is subject to a CCA rate of 12% and the equipment, a rate of 15%. For tax purposes, the building was amortized separately in its own pool. Additional net working capital would be required to support this project. The NWC turnover ratio for this operation is expected to be 4:1.
Which financial statements would I use to illustrate the above information? Thanks!