Author Question: Manitoba Hideaways is considering a new project whose data are shown below. The equipment has a ... (Read 87 times)

Labomba · **on:** Aug 7, 2023

Manitoba Hideaways is considering a new project whose data are shown below. The equipment has a 4-year project life. This equipment falls into class 43 with a CCA rate of 30% and would have zero salvage value. No new working capital would be required. Revenues and cash operating costs are expected to be constant over the project’s 4-year life. What is the project’s NPV? (Hint: Cash flows are constant in Years 1 to 4.)

WACC	9%
Net investment cost	$70,000
Sales revenues, each year	$68,000
Cash operating costs	$27,000
Tax rate	36%

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$33,594

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$34,402

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$35,417

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$36,284

ladan86 · **Reply #1 on:** Aug 7, 2023

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