An investment in plant and machinery of $12m will be required as soon as regulatory approval has been granted. Tax
allowable depreciation is available on the plant and machinery at an annual rate of 20% on a straight-line basis. A
balancing adjustment is expected at the end of the project when the plant and machinery will be scrapped.
Tax is payable at 20% in the year in which profits are made. The relevant cost of capital to be used in the appraisal is
12%. 這是題目原文