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  3. 3. a new electronic process monitor will cost clar

3. A new electronic process monitor will cost Clarke Designs $75,000. This cost will be...

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3. A new electronic process monitor will cost Clarke Designs $75,000. This cost will be depreciated at 20 percent per year (class 8). The monitor will actually be worthless in five years. The new monitor would save Clarke $12,000 per year before taxes in operating costs. What is the remaining UCC after Year 57 Assume a tax rate of 40 percent. 4. A project will have annual operating cash flow of $37,500 for 4 years. At the beginning of the project, net working capital of $122,000 will be needed. Only $18,700 of this amount will be recovered at the end. Ignoring taxes, what is the project's NPV if the required return is 8%? mu 5. You purchase equipment for $100,000 and it costs $10,000 to have it delivered and installed. Based on past information, you believe that you can sell the equipment for $17,000 when you are done with it in 6 years. The company's marginal tax rate is 40%. If the applicable CCA rate is 20% and the required return on this project is 10%, what is the present value of the CCA tax shield (assume the asset pool keeps open)

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