Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 26, 2024

The cost of the machine is $14,730. The CCA rate is 22%. After 9 years, the machine is sold for $2,144 which is less than

The cost of the machine is $14,730. The CCA rate is 22%. After 9 years, the machine is sold for $2,144 which is less than the UCC of the asset class. If there are other assets in the asset class, the discount rate is 9% and the tax rate is 36%, what is the present value of the CCA tax shield of this machine? (Assume 150%-rule)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investments

Investments

Authors: William F. Sharpe, Gordon J. Alexander, Jeffery V. Bailey

6th Edition

8120321014, 978-8120321014

More Books

Students also viewed these Finance questions

Question

★★★★★

Musical Corporation acquires 80 percent of Dustin Corporations common shares on January 1, 20X2. On January 2, 20X2, Dustin acquires 60 percent of Rustic Corporations common stock. Information on...

Answered: 1 week ago

Question

★★★★★

Building an abstract base class with pure virtual Functions. Trying to get area, volume and surface area of three different types of shapes. I need to code this in C++. Please help. URGENT Part 2 and...

Answered: 1 week ago

Question

★★★★★

How is ????0 different from ????0?

Answered: 1 week ago

Question

★★★★★

Given the circuit shown in Fig. 19-36, use the words increase, decrease, or stays the same to complete the following statement: (a) If R7 increases, the potential difference between A and E____....

Answered: 1 week ago

Question

★★★★★

to acquire a 9. Pedro has S40,000 capital and Freida ha $30,000 capital in the Pedro & F da partnership Podro and Freida sta profits and losses qually Roland Richmond oontributes cash of $32 000...

Answered: 1 week ago

Question

★★★★★

5. A firm is considering the purchase of one of two machines to replace an existing one. Machine A will cost GBP 16,000 and has a three-year life. Annual net cash flows are expected to be GBP 7,200,...

Answered: 1 week ago

Question

★★★★★

A popular Airliners' Business Class check-in counter at CLT Airport has been experiencing some backlogs. A study indicated that customers arrive at an average of 60 per hour and that the arrivals are...

Answered: 1 week ago

Question

★★★★★

Your company intends to invest in FinTrans, a fintech company that facilitates convenient transfer of funds across borders. You will be able to influence FinTrans' product development so that your...

Answered: 1 week ago

Question

★★★★★

Last chance to redeem my terrible drawings! h d3 m dz The simplified image above depicts how water towers provide pressure to homes in the surrounding area. A tower maintains a reservoir of water at...

Answered: 1 week ago

Question

★★★★★

Question 1: (Suggested 250 words per section) 1.1 What items might Susan present to the GM regarding the value of a green program in addition to the potential for business such as CERES? 1.2 What...

Answered: 1 week ago

Question

★★★★★

In your personal circumstances at this point in time, which would you prefer - a defined benefits plan or a defined contributions plan? Explain

Answered: 1 week ago

Question

★★★★★

How could a department manager prevent excessive absenteeism among employees?

Answered: 1 week ago

Question

★★★★★

Why should supervisors and managers be most interested in the results of employee behavior? Why should they not try to eliminate the causes of such behavior?

Answered: 1 week ago

Question

★★★★★

Where should a department manager first look for clues to corrective action when an employee exhibits problems in meeting the jobs minimum standards of performance?

Answered: 1 week ago

Previous Question Next Question