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An asset has an installed cost of $1 million, a life of 8 years, a CCA rate of 30%, and a salvage value of $50,000.

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An asset has an installed cost of $1 million, a life of 8 years, a CCA rate of 30%, and a salvage value of $50,000. What is the relevant present value of CCA tax shields from the lessee's point of view, if the lessee's marginal tax rate is 40% and borrowing cost is 12%? Asset class will be open after disposing this asset. $303,120.80 $289,783.33 $302,499.67 $301,785.65 $304,349.28

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