Now assume a marginal tax rate of 0.4. Assume that the funds can be obtained for 0.10
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Now assume a marginal tax rate of 0.4. Assume that the funds can be obtained for 0.10 at a bank. The company uses sum-of-the-years’ digits depreciation for taxes.
Should the firm buy or lease? (Assume that the present value of the depreciation deductions is 0.79997 per dollar of depreciable assets using 0.06 as the discount rate.)
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An Introduction To Accounting And Managerial Finance A Merger Of Equals
ISBN: 9789814273824
1st Edition
Authors: Harold JR Bierman
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