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Albert Inc. is considering the purchase of a new machine for $100,000, installed. This machine is included in CCA class 8 (20%). The firm expects

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Albert Inc. is considering the purchase of a new machine for $100,000, installed. This machine is included in CCA class 8 (20%). The firm expects to the machine to have a salvage value of zero after four years. Determine the present value of the CCA tax shield if the firm's marginal tax rate is 30%, its weighted average cost of capital (WACC) is 10% and the firm has other equipment in the asset class. Assume that the half- year rule applies. $19,091 $13,455 $11,455 $22,909

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