Hull Small Business is considering an expansion project that requires $135,000 for the purchase of capital assets and $35,000 for additional inventory.The project will generate after-tax operating income of $50,000 per year.The project has a five-year economic life and a CCA rate of 20 percent.What is the ending UCC upon termination of the project?

Question

Quizplus · Accepted Answer

Ending UCC₅ = $135,000*(1 - 20%/2)*(1 - 20%)⁴ = $49,766.40

Hull Small Business Is Considering an Expansion Project That Requires