Cold Soft Drinks Inc recently spent $15 million to purchase some equipment used in their production process This equipment has a CCA rate of 25 and the firm 's marginal corporate tax rate is 35 If the appropriate discount rate is 10 per year, the present value of the first five CCA tax shields is c...

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Cold Soft Drinks Inc recently spent $15 million to purchase some equipment used in their production process.

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Cold Soft Drinks Inc recently spent $15 million to purchase some equipment used in their production process. This equipment has a CCA rate of 25% and the firm's marginal corporate tax rate is 35%. If the appropriate discount rate is 10% per year, the present value of the first five CCA tax shields is closet to:
a)$2.93 million
b)$3.19 million
c)$3.23 million
d)$3.51 million

Posted Date: Jun 07, 2024 10:03 AM

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Cold Soft Drinks Inc recently spent $15 million to purchase some equipment used in their production process.

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