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1. Why are present values, taxes and interest rates of such importance in Capital Budgeting? What is the tax shield on CCA? Why is it
1. Why are present values, taxes and interest rates of such importance in Capital Budgeting? What is the tax shield on CCA? Why is it important?
2. The book value of a machine is a valuable asset when it is presented on the balance sheet for external reporting, however, the cost of such an asset may be considered irrelevant in most internal decision-making. Explain how and why this might be true.
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