Question
Your firm needs a machine which costs $160,000, and requires $31,000 in maintenance for each year of its 3 year life. After 3 years, this
Your firm needs a machine which costs $160,000, and requires $31,000 in maintenance for each year of its 3 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 21% and a discount rate of 15%. What is the depreciation tax shield for this project in year 3?
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$23,696
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$18,720
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$4,976.16
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$3,554.40
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Finance For Non Financial Managers
Authors: Pierre G. Bergeron
5th Edition
0176104070, 9780176104078
