Calculate the nw of the new refrigeration system

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Toronto Food Services is oonsideri ng installing a new refrigeration system that will cost $600. 000. The system will be depreciated at a rate of 20% {Class 8} per year over the system's ten-year life and then it will be sold for $90,000. The new system will save $180,000 per year in pre-tax operating oos's. An initial investment of $TD,000 will have to be made in working capital. The tax rate is 35% and the discount rate is 10%. Calculate the NW of the new refrigeration system. You must show all calculations for full marks in the space provided below or you can upload them to the drop box provided in the assessment area.

Reference no: EM133205499

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