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Your company purchased equipment for $700,000 . It will last for 10 years with no salvage value. The companys marginal tax rate is 40% .

Your company purchased equipment for $700,000 . It will last for 10 years with no salvage value.
The companys marginal tax rate is 40% . Required return rate is 20% . The CCA rate is 25%
Required: what is the present value of the CCA tax shield?

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