Is Considering The Purchase Of A Wind Mill That Costs 500 000 And Produces Befor

/in /by

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? 

PLEASE PROVIDE FORMULAS IN ANSWERS

 
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