Question
You work for Athens Inc., and you are asked to estimate the Year 2 CCA for a project with the following data. What is the
You work for Athens Inc., and you are asked to estimate the Year 2 CCA for a project with the following data. What is the Year 2 CCA (Capital Cost Allowance)?
| Working capital investment | $4,000 |
| Equipment cost (Invoice price) | $50,000 |
| Installation cost of equipment | $5,500 |
| Tax rate | 35.0% |
| CCA rate | 30.0% |
| $11,655 | ||
| $14,152 | ||
| $12,750 | ||
| $15,173 |
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
14th edition
1337090581, 978-1337090582
