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CanarieCorporation is making a $103,050investment in equipment with a5-year life. The company uses the straight-line method of depreciation and has a tax rate of20percent. The

CanarieCorporation is making a $103,050investment in equipment with a5-year life. The company uses the straight-line method of depreciation and has a tax rate of20percent. The company's required rate of return is11percent.

What is the present value of the tax savings related to depreciation of the equipment?

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