Business & Finance Assignment | custom Homework Help
December 28th, 2019
rate is 15% (declining balance method) and the half-year rule applies. The discount rate is 12%, the tax rate is 40% and the expected salvage value at the end of 6 years is zero.
1- What is the present value of the after-tax operating cash flows
(excluding CCA tax shield) for years 1 through 6?
2 – What is ABC’s CCA tax shield in Year 2?
3 – What is the present value of ABC’s CCA tax shields over the life of the project?
4 – What is the overall impact of the changes in working capital on Innovative Energy Co. project’s NPV?