*** PLEASE DON'T USE EXCEL!! USE THE FORMULA BELLOW***

The Tax-Shield Approach (assuming that the capital class remains open): NOWCrecovered. Salvage+ PVCCATS The closed-form formula for the Present Value of CCA Tax Shield is SydT r+d 1+r (1+r) d PVCCATS where d is the CCA rate of the capital class, SN is the salvage value of the capital asset at year N. The Tax-Shield Approach (assuming that the capital class remains open): NOWCrecovered. Salvage+ PVCCATS The closed-form formula for the Present Value of CCA Tax Shield is SydT r+d 1+r (1+r) d PVCCATS where d is the CCA rate of the capital class, SN is the salvage value of the capital asset at year N