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RoyalMountain Corp. purchased an asset for $ 2 2 0 , 0 0 0 . The asset will yield incremental annual cash inflows of $
RoyalMountain Corp. purchased an asset for $ The asset will yield incremental annual cash inflows of $ for the next years, starting one year from now. These cash flows were calculated WITHOUT accounting for the CCA tax shield. The company faces a discount rate of it is in the tax bracket, and the asset is being depreciated at declining balance with a halfyear rule and disposed from the existing asset pool at zero salvage. What is the PV of the cash inflows, taking the CCA tax shield into account?
a
$
b
$
c
$
d
$
e
$
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