$pt=170658$&cmid$=52123$

Issessing the prev.

Week $1\_29-$ Googl..

Group $7\_$Activity S$..$

QM Student Handb.

$2$:$11$:$49$

$50$

Your company purchases machinery for $$90,000.$ The machinery has a CCA rate of $25\%.$ You intend to sell the machinery in year $12$ for a salvage value of $$18,000.$ At the time of sale, you still anticipate having other assets in the class. The relevant tax rate is $35\%.$ Company uses a $12\%$ rate of return. Determine the present value of the incremental tax shields generated.

a$.$ $$19,051$

b$.$ $$21,236$

c$.$ $$18,575$

d$.$ $$21,284$

e$.$ $$20,144$