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Montreal Poutine Company (MPC) will release a new range of frozen poutine which contain flavoured cheese curds. New equipment to manufacture the poutine will cost $3 million. The new equipment falls under asset class 43 and has a capital cost allowance (CCA) rate of 30%. It is expected that the range of poutine will bring in revenues of $4 million per year for four years with production and support costs of $1.6 million per year. If MPC's marginal tax rate is 37%, what are the incremental free cash flows, in millions, in the first year of this project assuming the half year rule is in effect? Round to 2 decimal places.
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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