York Manufacturers has purchased an asset that falls under a class with a CCA rate...
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York Manufacturers has purchased an asset that falls under a class with a CCA rate of 20%. The asset cost $60,000 and is expected to last for 4 years. Each year, it is expected to generate $25,000 in annual savings. At the end of its life, it is expected to have a salvage value of $10,000. Assume a tax rate of 40% and discount rate of 10%. The half year rule applies for the tax shield NOT the accelerated investment initiative! There are no changes in working capital to assess as part of the equation.
What is the NPV of this investment? Round to the nearest whole dollar
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