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Time left 2 : 0 4 : 0 0 Hide Albernie Ltd . purchased a CCA Class 8 ( CCA rate of 2 0 %
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Albernie Ltd purchased a CCA Class CCA rate of item of equipment for $ was the only item in the Class capital cost allowance pool. The equipment is expected to generate savings in the amount of $ per year. The company uses straightline depreciation and estimates a year useful life with $ salvage value for the new equipment. The tax rate is and Albernie has a required rate of return of
Required: round your answer to the nearest whole dollar
What is the maximum capital cost allowance that Albernie Ltd can claim in year if the maximum was claimed in year Answer: $
What is present value of the aftertax savings that Albernie Ltd expects during the useful life of the equipment?
Answer: $
What is present value of the salvage value
tiat Albernie Ltd is expecting from the equipment?
Answer: $
What is the net present value of the Albernie Ltd investment in equipment if the present value of the tax shield that Albernie Ltd can expect from the equipment is $
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