Question: Your firm needs a computerized machine tool lathe which costs $80,000, and requires $20,000 in maintenance for each year of its 3 year life. After

Your firm needs a computerized machine tool lathe which costs $80,000, and requires $20,000 in maintenance for each year of its 3 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 34% and a discount rate of 10%.

87. Calculate the depreciation tax shield for this project in year 3. a. $2,016 b. $3,513 c. $4,031 d. $5,222 e. $5,719

* * * I only need help to know how to get the MACRS and the steps on how to get them. Please Please Please, add the steps needed because I don't understand how to get them. Thank you! * * *

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