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S&M, Inc. is considering purchasing equipment for $450,000 that will be depreciated using the straight-line method. The equipment is expected to have a salvage value
S&M, Inc. is considering purchasing equipment for $450,000 that will be depreciated using the straight-line method. The equipment is expected to have a salvage value of $15,000 at the end of its 6-year life. S&M's tax rate is 30%. A 10% discount rate is appropriate for the asset. What is the present value of the depreciation tax shield?
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