A new machine will cost $500,000 . It is in a CCA class pool that uses a declining balance rate of 30 % . The company's tax rate is 40% and it requires a 15 % rate of return on investments. Calculate the present value of the cash savings from the CCA for the first year assuming the savings occur at year end.

Answer rating: 100% (QA)

Cost of Machine x declining balance rate x Proportion ... View the full answer