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yogesh A firm purchases a $75,000 asset and will depreciate it to a book value of zero. If the discount rate is 10%, use the

yogesh

A firm purchases a $75,000 asset and will depreciate it to a book value of zero. If the discount rate is 10%, use the MACRS schedule to calculate the present value of the \begin{tabular}{cc} Year & MACRS Rate \\ 1 & 33.33% \\ 2 & 44.45% \\ 3 & 14.81% \\ 4 & 7.41% \end{tabular} Depreciation Tax Shield Expense Tax Shield Tax rate 21% PV of Tax Shield

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