A Canadian-controlled and private mail-order computer company, sells computer supplies and peripherals. The company leased...
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A Canadian-controlled and private mail-order computer company, sells computer supplies and peripherals. The company leased showroom space and a warehouse for $30,000 a year and installed $120,000 worth of inventory checking and packaging equipment. The CCA rate for this investment is 30%. The life span of the project is 5 years. The salvage value is $$15,000. The MARR is 12%. The store was completed and operations began on January 1. The company had a gross income of $1,500,000 annually. Annual supplies and all operating expenses other than the lease expense were itemized as follows:
Costs of Good Sold
$500000
Salaries
$250000
Other Expenses
$100000
Total Expenses
$850000
a) How much will the company pay in federal and provincial income taxes in each of the 5 years? (80 marks)
b) Find the net present worth of the project (20 marks)
**done in excel please***
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