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Posted on Jul 17, 2024

The cost of the machine is $ 1 3 , 6 2 2 . The CCA rate is 2 7 % . After 9 years,

The cost of the machine is $

13, 622 .

The CCA rate is

27 % .

After

9

years, the machine is

sold for $

1, 459

which is less than the UCC of the asset class. If there are other assets in

the asset class, the discount rate is

7 %

and the tax rate is

38 %,

what is the present

value of the CCA tax shield of this machine?

(

Assume

150 % -

rule

)

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