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Question 10 o/1 pts An investment proposal includes the following data extract: Project: Buy large robotic equipment to be installed into a production line of
Question 10 o/1 pts An investment proposal includes the following data extract: Project: Buy large robotic equipment to be installed into a production line of Boeing engines. Capital investment proposed = AUD 220M, with additional installation costs of AUD15M Useful life is 10 years. Depreciation on a straight line basis. Residual value at the end of ten years is AUD5M. Tax rate is 30%. What is the value of the annual depreciation tax shield? How would the NPV change if an accelerated method of depreciation is used? AUD7.05M. Decrease. AUD7.05M. Increase. You Answered AUD6.9M. Decrease. AUD23M. Increase. Correct Answer O AUD6.9M. Increase
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