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ABC Inc. purchased machinery for $539353 which is used through the end of Year 2. The machine falls under the 31% asset class. At the
ABC Inc. purchased machinery for $539353 which is used through the end of Year 2. The machine falls under the 31% asset class. At the end of Year 2, the machine is sold for $67515. What is the present value of the total CCA tax shields over 2 years if the firm's tax rate is 40% and its cost of capital is 5%?
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
10th Edition
538482109, 1133711774, 538482389, 9780538482103, 9781133711773, 978-0538482387
