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An infrastructure investment firm that is currently analyzing a new project which will generate an annual before tax operating cash flow of $500,000. The capex
An infrastructure investment firm that is currently analyzing a new project which will generate an annual before tax operating cash flow of $500,000. The capex for the project is $4M, the firm has a tax rate of 25% and the CCA depreciation rate for this asset is 30%. The cost of capital is 10%.
What is the projects year 3 CCA expense?
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