Problem
The Tasmanian Devil is planning on expanding his spin-o-rama business into the metro Halifax area. He has the opportunity to purchase a new Ford Spinner at a cost of $100,000. The cost of modifying the vehicle to make it idiot proof is an additional $60,000. At the end of the 5 years, the Ford Spinner may be repurchased by the vendor for $20,000. The Ford Spinner is in a CCA class that used a 30% CCA rate. The venture will generate an additional $50,000 per year, putting TAZ into a 30% tax bracket for small business. Assume that TAZ's cost of financing this project is 10%. Should TAZ accept this project?