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Bonus depreciation is a special tax treatment that allows you to depreciate the entire cost of an investment in the first year. A company buys

Bonus depreciation is a special tax treatment that allows you to depreciate the entire cost of an investment in the first year. A company buys a $1 million piece of machinery. What is the present value of using bonus depreciation instead of straight- line depreciation over 5 years if the tax rate is 20% and the discount rate 10%

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