Table Window Help Insert Format Tools AutoSave on OFF ... Documenti References Mailings >> Tell me Share Co Draw sert Layout Design 33321 AC A Styles St . Question 4: (26 marks) One Hawk Ltd. is evaluating a project on purchasing new automation equipment to improve its pro action capacity. This project would require an initial investment of $1.2 million. The new equipment will have a useful life of 10 years with a residual value of $75,000 at year 10. One Hawk will use straight-line depreciation method. With the automation equipment, production and sales are expected to increase by 8,000 units per year for the next 10 years. Selling price will remain $180 per unit. Total variable cost is still $128 per unit, but the annual fixed costs will increase by $102,000. . All cashflows are assumed to occur at the end of each year. One Hawk evaluate this project using a 15% after-tax discount rate. The corporate tax rate is generally 30% in Australia. Required: a) Given the expected increase in sales, calculate the incremental before-tax profit for each year. 15 marks/ Click or tap here to enter text 7 of 9 7 of 1399 words English (United States) . Focus DEPRECIATION METHODS 80 qa Q0D DOC F4 1 F2 F3 FS F7 F6