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?
A) $265
B) $1,133
C) $1,839
D) $2,261
E) $2,842
Correct Answer:
Verified
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