Champlain Transportation Inc

question 73

Multiple Choice

Champlain Transportation Inc.is considering a five-year project that requires an initial capital investment of $1 million.The project is expected to generate operating revenue of $500,000 per year, and the associated operating expenses are estimated at $250,000 per year.The capital asset belongs to asset class 9, which has a CCA rate of 30%.The firm's marginal tax rate is 35%.What is the after-tax cash flow for year 1 assuming accelerated investment incentive is applicable for CCA in year 1?

• A)$215,000
• B)$267,500
• C)$302,500
• D)$320,000

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Definitions:

Personnel Resources

Human resources or the workforce of an organization, including the talents, skills, and labor available to perform work.

Specialty Nurses

Registered nurses who have gained additional certifications and expertise in specific areas of healthcare.

Linear Programming

A mathematical method used for achieving the best outcome in a model whose requirements are represented by linear relationships, commonly used in maximizing profit or minimizing cost.

Project Analysis

An examination of the various aspects of a project, including its feasibility, risks, timeline, and cost, to ensure its potential for success.