What is the project npv for glenora inc

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Problem 1: Glenora Inc. is considering the following project: The equipment has a 4-year project life. This equipment falls into class 43 with a CCA rate of 30% and would have zero salvage value. The firm has other assets in asset class 43. No new working capital would be required. Revenues and cash operating costs are expected to be constant over the project's 4-year life. What is the project's NPV?

WACC 8.0%

Net investment cost $65,000

Sales revenues, each year $70,000

Cash operating costs $25,000

Tax rate 35.0%

a $29,250
b $16,284
c $49,175
d $96,880

Reference no: EM132839775

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