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452 CHAPTER 12: INCOME TAXES FOR CORPORATIONS Declining Balance Depreciation 12-20 A firm is considering the following investment Compute the aft investment situati tax rate. project: 12-23 This is the contin of paying $10 corporation will remaining $80,0 remain unchang equal end-of-yea Prepare an into account bo Before-Tax Cash Flow Year (thousands) 0 $1000 500 340 244 100 (a) Compute tools, takin (b) Explain w (a) is diff in Probler 100 125 Salvage value A firm may in The project has a 5-year useful life with a $125,000 salvage value, as shown. Double declining balance depreciation will be used, assuming the $125,000 salvage value. The combined income tax rate is 34%. If the firm requires a 10% after-tax rate of 12-24 A ated by doubl conversion t For depreciat at the end of is thought to is shown in return, should the project be undertaken? 12-21 The Shellout Corp. owns a piece of netroleum