BUS 480 BUS480 Module 5 Assignment 1 LASA 2 (Argosy University)

BUS 480 Module 5 Assignment 1 LASA 2—Capital Budgeting Techniques (Argosy University)

Wheel Industries is considering a three-year expansion project, Project A.  The project requires an initial investment of $1.5 million. The project will use the straight-line depreciation method. The project has no salvage value. It is estimated that the project will generate additional revenues of $1.2 million per year before tax and has additional annual costs of $600,000.  The Marginal Tax rate is 35%.