Question: TB MC Qu. 12-9 Your firm needs a machine which costs... our firm needs a machine which costs $250,000, and requires $46,000 in maintenance for
TB MC Qu. 12-9 Your firm needs a machine which costs... our firm needs a machine which costs $250,000, and requires $46,000 in maintenance for each year of its 5 year life. After 5 years, this machine will be re e MACRS 5-year class life category. Assume a tax rate of 21% and a discount rate of 12%. What is the depreciation tax shield for this project in year 5? Multiple Choice $3,456.00 $28.800 $22.752.00 $6,048.00 TB MC Qu. 12-9 Your firm needs a machine which costs... Your firm needs a machine which costs $250,000, and requires $46,000 in maintenance for each year of its 5 year ife. After 5 years, this machine will be replaced. The machine falls the MACRS 5 year class life category. Assume a tax rate of 21% and a discount rate of 12% What is the depreciation tax shield for this project in year 5? Multiple Choice $3,456.00 $28.800 522.752.00 560400
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