Question
A machine has an initial cost of $500,000 and useful life of 10 years. The tax rate is 40% and the discount rate is 12%.
A machine has an initial cost of $500,000 and useful life of 10 years. The tax rate is 40% and the discount rate is 12%. The annual depreciation tax shield is $20,000 in years 1 to 10. What is the present value of the annual depreciation tax shield? Select one: O a. $67,802.68 Ob. None of THESE 00 $113,004.46 Od $45,201.78
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Financial Accounting
Authors: Jeffrey Waybright, Robert Kemp
1st Edition
013606048X, 9780136060482
