Question: A new machine will cost $1,800,000. It is in a CCA class pool that uses a declining balance rat. company's tax rate is 38% and
A new machine will cost $1,800,000. It is in a CCA class pool that uses a declining balance rat. company's tax rate is 38% and it requires a 9% rate of return on investments.Calculate the present value of the the tax shield the first year assuming the savings occur at year end. O a. $102,600.00 O b. $188,256.88 $94,128.44 C. O d. $153,577.98 O e. $167,400.00
A new machine will cost $1,800,000. It is in a CCA class pool that uses a declining balance rat company's tax rate is 38% and it requires a 9% rate of return on investments. Calculate the present value of the the tax shield the first year assuming the savings occur at year end. a. $102,600.00 b. $188,256.88 c. $94,128.44 d. $153,577.98 e. $167,400,00
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
