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bananas87 bananas87
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A month ago
Champlain Transportation Inc. is considering a six-year project that requires $800,000 for the purchase of a capital asset with a CCA rate of 30%. The project is expected to generate sales revenue of $600,000 per year. The project's variable and fixed costs are estimated at $240,000 and $50,000 per year, respectively. The firm's marginal tax rate is 35% and cost of capital is 12%. Ignoring CCA, what is the present value of the after-tax operating cash flows?

▸ $1,274,536

▸ $962,069

▸ $828,449

▸ $1,480,107
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
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ordinarykathyordinarykathy
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A month ago
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