A Canadian firm needs a computerized machine which costs $80,000 plus another $10,000 to install....
90.2K
Verified Solution
Link Copied!
Question
Finance
A Canadian firm needs a computerized machine which costs $80,000 plus another $10,000 to install. The companys VP of Sales believes that the machine will boost annual revenues by $250,000. The machine costs $20,000 to maintain for each year of its three year life. After three years, the salvage value will be $15,000. The machine falls into the Class 10 equipment category (CCA rate 30%). Assume a tax rate of 34% and a discount rate of 10%, the half-year rule applies. Further assume that the asset pool remains open after the end of the third year. 23. What is the present value of the CCA tax shield? + operating cash flow for year 2?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.