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Firm X needs 1 computer. Firm X can buy 1 computer for 4,701. The cost of debt for Firm X is 5%. The corporate tax
Firm X needs 1 computer. Firm X can buy 1 computer for 4,701. The cost of debt for Firm X is 5%. The corporate tax equals 35%. Firm X follows a straight-line depreciation method and the economic life of the computer is 2 years. Compute the depreciation tax shield of year 2.
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