Given the following information and assuming a 20% CCA class, what is the NPV for this project? Initial investment in fixed assets = $800,000; initial investment in net working capital = $200,000;
Life = four years; after-tax cost savings = $250,000 per year; salvage value = $30,000; tax rate =
35%; discount rate = 16%.
A) $95,101
B) $105,967
C) $147,261
D) $187,098
E) $418,198
Correct Answer:
Verified
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