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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
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