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You purchase a machine for $200,000 which belongs in a 30% CCA class. What is the present value of the CCA tax shield on the
You purchase a machine for $200,000 which belongs in a 30% CCA class. What is the present value of the CCA tax shield on the machine if it is sold at the end of the fifth year for $50,000, your tax rate is 35%, and the appropriate discount rate is 10%?
Select one:
a.
$41,964
b.
$46,202
c.
$66,623
d.
$86,994
e.
$52,215
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