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In 2 0 2 4 , a company purchases $ 3 0 0 , 0 0 0 worth of PP&E . In 2 0 3

In 2024, a company purchases $300,000 worth of PP&E. In 2034, the facility can be sold for $26,000. the ATO confirms that for tax purposes, the new PP&E has an eight-year tax life. However, in the companys experience, PP&E can be operated effectively for a full-ten years before they need replacing. It must be noted that any associated asset's depreciation expense begins in 2025, and the financial analysis will be conducted over 10 years. Additionally, the ATO states that all non-current assets be depreciated to Zero.
The tax rate is 30%
In regards to this information, answer the following questions.
1. What is the depreciation tax savings over the life of the financial analysis.
2. What is the tax effect of the sale of the PP&E in the final year of cash flows.

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