Rosemary Industries is considering a new project. The project will require $1,859,000 for new fixed assets. The
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Rosemary Industries is considering a new project. The project will require $1,859,000 for new fixed assets. The project has a 5 year life. The fixed assets will belong in a 30% CCA class. At the end of the project, the fixed assets can be sold for 30% of their original cost. The Tax Rate is 35% and the required rate of return is 5%. Based on the given information, what is the amount of the present value of the CCA tax shield of this project?
Related Book For
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
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