Question
An asset has an installed cost of $1 million, a life of 10 years, a CCA rate of 30%, and a salvage value of $30,000.
An asset has an installed cost of $1 million, a life of 10 years, a CCA rate of 30%, and a salvage value of $30,000. 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%?
$267,648
$306,919
$311,748
$316,576
$235,007
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
11th edition
324422870, 324422873, 978-0324302691
