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Your firm needs a machine which costs $200,000, and requires $41,000 in maintenance for each year of its 10 year life. After 5 years, this
Your firm needs a machine which costs $200,000, and requires $41,000 in maintenance for each year of its 10 year life. After 5 years, this machine will be replaced. The machine falls into the MACRS 10-year class life category. Assume a tax rate of 40% and a discount rate of 12%. What is the depreciation tax shield for this project in year 10? $7,376.00 $18,440 $2,212.80 $11,064.00
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