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A project has a $1.5 million dollar plant purchase today. The project will run for three years from today, after which the plant will be
A project has a $1.5 million dollar plant purchase today. The project will run for three years from today, after which the plant will be sold for $0 and have no tax consequences. The relevant discount rate is 6%. Please indicate the CCA expense schedule for the next three years, with a CCA rate of 40%. Furthermore, if the tax rate is 35%, what is the present value of the CCA tax shields?
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