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A machine will cost $ 6 5 2 , 0 0 0 . After six years of useful life, the machine will have no salvage

A machine will cost $

652, 000 .

After six years of useful life, the machine will have no salvage value. The machine is placed into the

25 %

CCA asset class and qualifies for the Accelerated Investment Incentive. The company

s cost of capital is

12 %

and its income tax rate is

25 % .

Calculate the present value of its CCA tax shield.

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