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You purchase equipment for $100,000 and it costs $10,000 to have it delivered and installed. You believe that you can sell the equipment for $17,000

You purchase equipment for $100,000 and it costs $10,000 to have it delivered and installed. You believe that you can sell the equipment for $17,000 when you are done with it in 6 years. The companys marginal tax rate is 40%. If the applicable CCA rate is 20% and the required return on this project is 10%, what is the present value of the CCA tax shield?The delivery and installation costs are capitalized in the cost of the equipment

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