Question
Suppose that you are able to generate an annual depreciation deduction of $34,000 that would otherwise have been taxed at a 30% rate each year
Suppose that you are able to generate an annual depreciation deduction of $34,000 that would otherwise have been taxed at a 30% rate each year for five years. Determine the present value of the annual tax savings using a 7.5% discount rate.
A) 137560
B) 41268
C) 96292
D) 26683
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Management Foundations A Pacific Rim Focus
Authors: Kathryn Bartol, Margaret Tein, Graham Matthews, Bishnu Sharma, Brenda Scott Ladd
3rd Edition
978-0070284944, 0070284946
