Question: Question 17 (2 points) Your firm needs a computerized line-boring machine which costs $80,000, and requires $20,000 in maintenance for each year of its three
Question 17 (2 points) Your firm needs a computerized line-boring machine which costs $80,000, and requires $20,000 in maintenance for each year of its three year life. After three years, the salvage value will be zero. The machine falls into the Class 10 equipment category (CCA rate 30%). Assume a tax rate of 34% and a discount rate of 10%. Compute the depreciation tax shield for year 3. A) $4,855 OB) $3,399 OC) $5,719 OD) $5,222 E) $2,016
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
