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The cost of the machine is $12,901. The CCA rate is 26%. After 9 years, the machine is sold for $1,339 which is less than
The cost of the machine is $12,901. The CCA rate is 26%. After 9 years, the machine is sold for $1,339 which is less than the UCC of the asset class. If there are other assets in the asset class, the discount rate is 8% and the tax rate is 40%, what is the present value of the CCA tax shield of this machine? (Assume 150\%-rule) Step by Step Solution
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Valuation Measuring And Managing The Value Of Companies
Authors: McKinsey & Company Inc., Tom Copeland, Tim Koller, Jack Murrin
3rd Edition
