Question
Determine the PV of the CCA tax shield of a class 10 asset (30% CCA rate) that has a cost of $75,000. The asset will
Determine the PV of the CCA tax shield of a class 10 asset (30% CCA rate) that has a cost of $75,000. The asset will have a useful life of 6 years. At the end of its useful life the asset will have a salvage value of $10,000. Assume that the firms opportunity cost of capital is 14%. The applicable tax rate is 34%.
USE PVCCATS FORMULA!!
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Accounting Comes Alive The Color Accounting Parable
Authors: Mark Robilliard ,Peter Frampton, Chang Chang, Mark Morrow, John Gorman
1st Edition
1450769608, 978-1450769600
