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Your firm needs a machine which costs $150,000, and requires $30,000 in maintenance for each year of its 7 year life. After 3 years, this
Your firm needs a machine which costs $150,000, and requires $30,000 in maintenance for each year of its 7 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 7-year class life category. Assume a tax rate of 40% and a discount rate of 14%. What is the depreciation tax shield for this project in year 7? $15,741 $10,494.00 $3,672.90 $26,235
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