The equipment required for a four year project costs $60,000 and belongs in a 20% CCA class. The project generates after-tax operating income of $13,750 and the fixed assets will be sold for $7,000 at the termination of the project. If the firm has a tax rate of 34% and a required return of 10%, what is the NPV?

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The Answer of The equipment required for a four year project costs $60,000 and belongs in a 20% CCA class. The project generates after-tax operating income of $13,750 and the fixed assets will be sold for $7,000 at the termination of the project. If the firm has a tax rate of 34% and a required return of 10%, what is the NPV?

The Equipment Required for a Four Year Project Costs $60,000