Carpel Tunnel Gold Mine (CTGM) is evaluating a project with a
2-year life. As consultant, you are given the following
information.
Table 1: Data related to CTGM’s proposed
expansion project.
Tax Rate
40%
Initial Investment
$1,000,000
Salvage Value at any time during the project
$100,000
Initial Investment in Net Working Capital
$50,000
Sales Year 1
$2,000,000
Sales Year 2
$4,000,000
Annual Operating Costs (each year)
$200,000
3-Year MACRS Depreciation Schedule
Year 1
.3333
Year 2
.4444
Year 3
.1482
Year...