Question
A new machine will cost $500,000. It is in a CCA class pool that uses a declining balance rate of 30%. The company's tax
A new machine will cost $500,000. It is in a CCA class pool that uses a declining balance rate of 30%. The company's tax rate is 40% and it requires a 15% rate of return on investments. Calculate the present value of the the tax shield the first year assuming the savings occur at year end. Round to the nearest cent. OA. $78,214.34 OB. $26,086.96 O C. $119,765.22 OD. $126.998.42 OE. $52,173.91
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Fundamentals Of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
16th Edition
9780357517574
