Solved

Use the Table for the Question(s)below

Question 19

Multiple Choice

Use the table for the question(s) below.
Use the table for the question(s) below.    -Visby Rides,a livery car company,is considering buying some new luxury cars.After extensive research,they come up with the above estimates of free cash flow from this project.The cars belong to asset class 10 and have a capital cost allowance (CCA) rate of 30%.What is the net present value (NPV) of the project,given that the cost of capital is 10%,and the company faces a marginal tax rate of 25%? A) $66,373 B) $78,564 C) $118,580 D) $151,142 E) $167,549
-Visby Rides,a livery car company,is considering buying some new luxury cars.After extensive research,they come up with the above estimates of free cash flow from this project.The cars belong to asset class 10 and have a capital cost allowance (CCA) rate of 30%.What is the net present value (NPV) of the project,given that the cost of capital is 10%,and the company faces a marginal tax rate of 25%?


A) $66,373
B) $78,564
C) $118,580
D) $151,142
E) $167,549

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions