Question
Your firm needs a machine which costs $110,000, and requires $26,000 in maintenance for each year of its 5 year life. After 3 years, this
Your firm needs a machine which costs $110,000, and requires $26,000 in maintenance for each year of its 5 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 5-year class life category. Assume a tax rate of 30% and a discount rate of 15%. What is the depreciation tax shield for this project in year 5?
A.$21,120
B.$3,168.00
C.$14,784
D.$6,336.00
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Principles Of Commodity Economics And Finance
Authors: Daniel P. Ahn
1st Edition
0262038374, 9780262038379
