A company is considering automating an existing manual process by buying a new equipment worth $105,000. The present value of the tax shield on capital cost allowance (CCA) of the new machine is $35,000, and the present value of incremental operating cash flows is $98,500. Calculate the NPV of the project. Multiple choice question. $28,500 $133,500 $98,500 −$6,500
A company is considering automating an existing manual process by buying a new equipment worth $105,000. The present value of the tax shield on capital cost allowance (CCA) of the new machine is $35,000, and the present value of incremental operating cash flows is $98,500. Calculate the NPV of the project. Multiple choice question. $28,500 $133,500 $98,500 −$6,500
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 1PA: Your company is planning to purchase a new log splitter for is lawn and garden business. The new...
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A company is considering automating an existing manual process by buying a new equipment worth $105,000. The present value of the tax shield on capital cost allowance (CCA) of the new machine is $35,000, and the present value of incremental operating cash flows is $98,500. Calculate the NPV of the project.
Multiple choice question.
$28,500
$133,500
$98,500
−$6,500
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