Question: Answers in chegg are wrong. Please post a detailed answer. O) The Shell Corporation has a 34% tax rate and owns a piece of petroleum-drilling

Answers in chegg are wrong. Please post a detailed answer.

O) The Shell Corporation has a 34% tax rate and owns a piece of petroleum-drilling equipment that costs $138,600 and will be depreciated at a CCA rate of 30%. Shell will lease the equipment to others and each year receive $34,600 in rent. At the end of five years, the firm will sell the equipment for $34,000. All values are presented in todays dollars. 2015 Calculate the overall present worth of these cash flows with tax effects it market interest rate is 10% and annual inflation rate is 2%

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