Question
A project will increase sales by $140,000 and cash expenses by $95,001. The equipment for the project will cost $100,000 and belong in a 30%
A project will increase sales by $140,000 and cash expenses by $95,001. The equipment for the project will cost $100,000 and belong in a 30% CCA class. The company has a marginal tax rate of 34%. What is the value of the depreciation tax shield in the second year?
please show me the step in detail.
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A First Course in Quantitative Finance
Authors: Thomas Mazzoni
1st edition
9781108411431, 978-1108419574
