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Your firm needs a machine which costs $100,000, and requires $31,000 in maintenance for each year of its 7 year life. After 5 years, this
Your firm needs a machine which costs $100,000, and requires $31,000 in maintenance for each year of its 7 year life. After 5 years, this machine will be replaced. The machine falls into the MACRS 7-year class life category. Assume a tax rate of 30% and a discount rate of 12 6. What is the depreciation tax shield or this project in ear 7 O $6.25100 O $8,930 O $2.679.00 O $1,071.60
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