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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%

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 companys 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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