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+ Cortome/BUS introduction Managerial inance200 C-BO 70/_layouts/15/doc2.aspx?source Feat Test Paper Cuss BUSI 2093 Set Br. Saved Share Editing View Tell me what you want to

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+ Cortome/BUS introduction Managerial inance200 C-BO 70/_layouts/15/doc2.aspx?source Feat Test Paper Cuss BUSI 2093 Set Br. Saved Share Editing View Tell me what you want to do Edito A Terwo. v 12 " A O Dictate Dr Av AD Q5 B. (20 Marks) You purchase equipment for $100,000 and it costs $10,000 to have it delivered and installed. Based on past information, you believe that you can sell the equipment for 517,000 when you are done with it in 6 years. The company's marginal tax rate is 40%. If the applicable CCA rate is 20% and the required return on this project is 10%, what is the present value of the CCA tax shield? PV tax shield on CCA- IdT 1+0.50 STX 1 d+r d+r (1+r)

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