Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

we expect a project to pay $30000 at the end of each yr for 10 years. project requires we purchase an asset that costs $50000.

we expect a project to pay $30000 at the end of each yr for 10 years. project requires we purchase an asset that costs $50000. for tax purposes, the asset depreciated straight line over the 10 years. tax rate is 30%
factor for pv of an anniity for 10% 10 years is 6.145.
what is the pv of depreciation tax shield?
a. $30,735.00
b. $9217.50
c. $21,507.50
d. $39,942.50

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

Step: 3

blur-text-image

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

Computerized Accounting With Quickbooks 2018

Authors: James B. Rosa, Kathleen Villani

1st Edition

0763882674, 9780763882679

More Books

Students also viewed these Accounting questions

Question

What would you do about the verbal homophobic insults?

Answered: 1 week ago