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Buhler Industries is a farm implement manufacturer Management is currently evaluating a proposal to build a plant that will manufacture lightweight tractors. Buhler plans to

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Buhler Industries is a farm implement manufacturer Management is currently evaluating a proposal to build a plant that will manufacture lightweight tractors. Buhler plans to use a cost of capital of 12% to evaluate this project. Based on extensive research. It has prepared the following incomplete incremental free cash flow projections (in Millions of dollars): Free Cash Flow ($000,000) Year o Years 1-9 Year 10 Revenues 110.00 110.00 - Manufacturing expenses (other than depreciation) - 37.00 - 37.00 - Marketing expenses -8.00 -8.00 - 2 EB/T ? - Taxes (35%) Unlevered not income + Using the Indirect method requires a separate calculation of the CCA tax shield. What is the present value of the CCA tax shield? The present value of the CCA tax shield is $million (Round to two decimal places.) 2 ? ? 2 2 ? 2

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