Star Inc. has identified a project with the following cash flows. Star Inc. is considering a new three-year expansion project that requires an initial fixed asset investment of $1,600,000. The fixed asset falls into Class 10 for tax purposes (CCA rate of 30 percent per year), and at the end of the three years can be sold for a salvage value equal to its UCC. The project is estimated to generate $1,875,000 in annual sales, with costs of $585,000. The tax rate is 20 percent. Please make sure your final answer(s) are accurate to 2 decimal places.
*Please see the attachment 1 & 2
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- Submitted On 22 May, 2018 05:12:30