Question: Peter Pontificator is proposing to purchase a paddle machine, which will cost $5 million, last ten years and have a salvage value of $80,000. Given

Peter Pontificator is proposing to purchase a paddle machine, which will cost $5 million, last ten years and have a salvage value of $80,000. Given a tax rate of 21%, and a cost of capital of 8% : What is the present value of the tax shield if straight-ine depreciation is used

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