4. ABC Co. invests in a new piece of equipment, costing $40,000. It intends to...
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4. ABC Co. invests in a new piece of equipment, costing $40,000. It intends to operate the equipment for four years when the scrap value will be zero. Expected net cash flows from the project are $10,000 in the first year and$20,000 for each of the next three years. The discount rate is 15 per cent and the rate of Corporation Tax is 30 per cent. Calculate the NPV for the project ignoring and including tax.
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