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Jackson Manufacturing Company purchased a new piece of equipment at a cost of $200,000 at the beginning of the year. For tax purposes, the machine

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Jackson Manufacturing Company purchased a new piece of equipment at a cost of $200,000 at the beginning of the year. For tax purposes, the machine is a Class 8 asset (CCA of 20%). The company has a 30% income tax rate. Assume that the company follows the "half-year" rule and has no other Class 8 assets during the period and a required rate of return of 12%. Do not enter $ or commas. Do NOT round intermediate calculations. Enter value in whole dollars, no decimal places or cents. Required: 1. Compute the dollar amount of tax savings from CCA for the 2nd year only. $ 2. Compute the PV of tax savings for the 3nd year. $

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