Your firm needs a computerized machine tool lathe which costs $52,000 and requires $12,200 in maintenance for
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Question:
Your firm needs a computerized machine tool lathe which costs $52,000 and requires $12,200 in maintenance for each year of its 3-year life. After three years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 35 percent and a discount rate of 13 percent. |
Calculate the depreciation tax shield for this project in year 3. (Round your answer to 2 decimal places.) |
Depreciation tax shield | $ |
Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
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