Financial Analysis

[Name of the Institute]Financial Analysis

Answer 1

Though the tax reduction will be the additional benefit of selling if Bayside sells the plant, as the book loss will be treated as an offset for the taxable income, the cost of the site restoration will also not be affected because of improvement. The net present value of the project is positive means the firm had therefore accepted the projected but the federal regulation cost further 200000 which is not good sign as the firm has to pay additional cost therefore it is suitable to sell the plant as the cost of additional 200000 ...