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Cellular Access, Inc., is a cellular telephone service provider. The firm just acquired a piece of equipment at a cost of $10m. The equipment will

Cellular Access, Inc., is a cellular telephone service provider. The firm just acquired a piece of equipment at a cost of $10m. The equipment will be depreciated straight line over the next five years to a book value of $1m, and there is no year rule. The firms tax rate is 40% and the cost of capital is 10%. Calculate the present value of depreciation tax shields for the firm over the next five years

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