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Solve each of the following parts independently. 1 . Lowney Limited has hired a public accounting firm to identify opportunities to reduce their corporate income

Solve each of the following parts independently.
1. Lowney Limited has hired a public accounting firm to identify opportunities to reduce their corporate income tax expense. The firms tax advisory fee will be $250,000. What will be the after-tax cost of the firms fee if Lowneys tax rate is 30%?
2. Cycling Accessories has introduced a new line of cold-weather apparel, and annual revenues have increased by $600,000. If the companys tax rate is 25%, what is the after-tax benefit from the increased revenues?
3. Solar Solutions has purchased new manufacturing equipment that cost $400,000. Calculate the yearly tax savings from the CCA tax shield for the next three years. Assume that the income tax rate is 30%, the CCA rate is 30%, and the weighted-average cost of capital (WACC) is 12%. Assume that CCA in the first year is subject to the accelerated depreciation method for the year of acquisition. (Hint: Use Microsoft Excel to calculate the discount factor(s).)(Do not round your intermediate calculations. Round your final answers to 2 decimal places.)

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