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ABC company is considering the acquisition of machine which belongs to a class with CCA rate of 53%. The cost of the machine is $1,375,000.
ABC company is considering the acquisition of machine which belongs to a class with CCA rate of 53%. The cost of the machine is $1,375,000. The expected economic life is 6 years. Salvage value is $242,000. The discount rate is 8.90% and the marginal tax rate is 35%. Assume the half-year rule applies. What is the CCA tax shield for year 2? PLEASE ANSWER USING FINANCIAL CALCULATOR OR FORMULAS NO EXCEL OR SPREADSHEETS
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