Today ABC Corp. starts a project that requires it to invest in new equipment of $1,103,000. Doing
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Today ABC Corp. starts a project that requires it to invest in new equipment of $1,103,000. Doing so will earn ABC pre-tax cash flows of $158,000 annually over 10 years. The equipment has a salvage value of $234,000. ABC's cost of capital is 6.30%, and its tax rate is 30%. The equipment falls into the 30% CCA class (half year rule applies). What is the NPV of the project?
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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