Bevan Co. is considering investing in an equipment to implement a cost-cutting proposal. The pre-tax cost reduction

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Bevan Co. is considering investing in an equipment to implement a cost-cutting proposal. The pre-tax cost reduction is expected to equal $5,000 for each of the four years of the project's life. The equipment has an initial cost of $18,500 and belongs in a 20% CCA class. Bevan Co. has a tax rate of 30%. What is the value of the depreciation tax shield for year 3 of the project?

$555
$679
$799
$863
$999

Posted Date: May 16, 2024 04:08 PM

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Bevan Co. is considering investing in an equipment to implement a cost-cutting proposal. The pre-tax cost reduction

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