Consider a four-year project that will result in cost cuts. It requires an initial investment in fixed assets in the amo

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Consider a four-year project that will result in cost cuts. It
requires an initial investment in fixed assets in the amount of
$800,000 with the CCA rate of 30% (Class 10). You will have to
invest $200,000 up-front in net working capital, which will be
fully recovered at the end of the project’s life. The project’s
pre-tax cost savings are $400,000 per year. Assume, the equipment
will be sold for $10,000 at the end of the project, and all
investment in net working capital will be recovered. The firm has a
tax rate of 35% and a required return of 12%. Based on this set of
assumptions, answer the following questions. Please note that you
do not need to do the calculations, just write the appropriate
formula and plug in the appropriate numbers, without completing the
calculations.