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ABC company is considering the acquisition of machine which belongs to a class with CCA rate of 51%. The cost of the machine is $1,396,000.
ABC company is considering the acquisition of machine which belongs to a class with CCA rate of 51%. The cost of the machine is $1,396,000. The expected economic life is 8 years. Salvage value is $227,000. The discount rate is 7.90% and the marginal tax rate is 30%. Assume the half-year rule applies. What is the CCA tax shield for year 2?
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