ABC Inc. purchased machinery for $539353 which is used through the end of Year 2. The machine falls under the 31% asset class. At the end of Year 2, the machine is sold for $67515. What is the present value of the total CCA tax shields over 2 years if the firm's tax rate is 40% and its cost of capital is 5%?

Answer rating: 100% (QA)

To calculate the present value of the total CCA tax shields over 2 years we need to calculate the to... View the full answer