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A machine costs $3 million and has zero salvage value. The machine qualifies under the...

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Accounting

A machine costs $3 million and has zero salvage value. The machine qualifies under the 3-year MARCS category. Assume a discount rate of 10% and a 40% tax rate. What is the present value of depreciation tax savings associated with this machine? (MARCS tax depreciation schedule of a 3-year class asset: 33.33% in year 1, 44.45% in year 2, 14.81% in year 3, and 7.41% in year 4) a. $1,090,900 b. $1,200,000 c. $994,741 d. $998,684

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