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Bling enterprises is contemplating the purchase of a $1 million piece of equipment. The equipment is eligible for a CCA rate of 30%, the company's

Bling enterprises is contemplating the purchase of a $1 million piece of equipment. The equipment is eligible for a CCA rate of 30%, the company's tax rate is 40% and their discount rate is 12%. What is the present value of the tax savings that this equipment would create?

The answer for PVCCAT is $270,408 but I am not sure on how to get that answer.

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