Question: question 1 a mew machine will cost $720000 it is in a CCA class pool that uses a declining balance rate of 20% the company

question 1

a mew machine will cost $720000 it is in a CCA class pool that uses a declining balance rate of 20% the company tax rate is 42% and it requires a 12% rate of return on investments calculate the present value of the tax shield the first year assuming the savings occur at year end

1-$54000

2-$60480

3-$37285.71

4-$30240

5-$27000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

question 1 a mew machine will cost $720000 it is in a CCA class pool that uses a declining balance rate of 20% the company tax rate is 42% and it requires a 12% rate of return on investments...

Q:

question 1 a mew machine will cost $720000 it is in a CCA class pool that uses a declining balance rate of 20% the company tax rate is 42% and it requires a 12% rate of return on investments...

Q:

A new machine will cost $1,800,000. It is in a CCA class pool that uses a declining balance rat. company's tax rate is 38% and it requires a 9% rate of return on investments.Calculate the present...

Q:

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...

Q:

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...

Q:

I have the answer in bold below but I need calculation details for them all. 31. If the lease payments of the $800,000 asset were $210,000, first payment occurring at the beginning of the first year...

Q:

#2= #5 npv= In 2018 , a company was planning to launch a new project in Canada. The cost of the production equipment is $1,560,000. The equipment falls in CCA class 8 with a 20% rate for income tax...

Q:

In 2018, a company was planning to launch a new project in Canada. The cost of the production equipment is $1,560,000. The equipment falls in CCA class 8 with a 20% rate for income tax purposes. A...

Q:

In 2018, a company was planning to launch a new project in Canada. The cost of the production equipment is $1,560,000. The equipment falls in CCA class 8 with a 20% rate for income tax purposes. A...

Q:

In 2018, a company was planning to launch a new project in Canada. The cost of the production equipment is $1,560,000. The equipment falls in CCA class 8 with a 20% rate for income tax purposes. A...

Q:

On September 15, 2008, financial services firm Lehman Brothers filed for bankruptcy with the U.S. Bankruptcy Court in the Southern District of New York. 95 That actionthe largest Chapter 11filing in...

Q:

(a) For the system described in Problem P13.10, design a lag compensator Gc(s) using the methods of Chapter 10 to achieve an overshoot less than 30% and a steady-state error less than 0.01 for a ramp...

Q:

15. A pyramid has a square base of length 4.8 m and a total surface area of 85 m. Find the volume of the pyramid.

Q:

Bob and Carol are both area managers for a large pharmaceutical company. At a meeting, it was uncovered that Bob makes significantly more money than Carol, despite the fact that their jobs are...

Q:

In what ways can confl ict enrich relationships?

Q:

How do listening and hearing diff er?

Q:

How does eff ective listening diff er across listening goals?