A machine will cost $755,000. After six years of useful life, the machine will have no salvage value. The machine is placed into the 20% CCA asset class and qualifies for the Accelerated Investment Incentive. The company's cost of capital is 13% and its income tax rate is 25%. Calculate the present value of its CCA tax shield

Answer rating: 100% (QA)

To calculate the present value of the Capital Cost Allowance CCA tax shield we first need to determi... View the full answer