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Suppose that Sudbury Mechanical Drifters is proposing to invest $ 6 0 . 0 million in a new factory. It can depreciate this investment straight
Suppose that Sudbury Mechanical Drifters is proposing to invest $ million in a new factory. It can depreciate this investment straightline over years. The tax rate is and the discount rate is
What is the present value of Sudburys depreciation tax shields?
What would be the present value of the tax shield if the government allowed Sudbury to writeoff the factory immediately?
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