Question
A firm plans to invest $50,000 in R&D that will be depreciated straight-line over a 5-years. What is the present value of the resulting depreciation
A firm plans to invest $50,000 in R&D that will be depreciated straight-line over a 5-years. What is the present value of the resulting depreciation tax shield if the tax rate is 21% and the discount rate is 10%?
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Handbook Of The Economics Of Finance
Authors: George M. Constantinides, Milton Harris, Rene M. Stulz
1st Edition
044459406X, 978-0444594068
