Question: Rather than lease the asset, Second Ltd can purchase the machinery today for 100,000. The machinery should be assumed to be depreciated on a straight

Rather than lease the asset, Second Ltd can purchase the machinery today for 100,000. The machinery should be assumed to be depreciated on a straight line basis over the five year expected life of the machinery. The corporate tax rate is 30 per cent. What is the tax saving from tax depreciation expenses each year when evaluating the purchase of the machinery?

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