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the answer in blue is correct. You firm just bought a new machine. The machine cost $1,100,000. The machine will be operated for 3 years.
the answer in blue is correct.
You firm just bought a new machine. The machine cost $1,100,000. The machine will be operated for 3 years. It will then be sold for its salvage value of $240,000. The CCA rate is 22%. The tax rate is 24%. The required rate of return is 8% compounded annualiy. The asset class will remain open. Assume the half-year rule is in effect. What is the present value of the CCA tax shield? Your answer should be accurate to two decimal places. Answer: 103.212.39(152,898.16) Step by Step Solution
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