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A new machine costs $982,990 and falls in a 32.00% CCA class. The machine will...

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Finance

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A new machine costs $982,990 and falls in a 32.00% CCA class. The machine will have zero value after 5 years of use but will save $456,630 annually in operating costs before taxes in those five years. Assume a tax rate of 35.37%. Using a required return of 16.31%, what is the present value of the CCA tax shield? $203,447 $208,800 $214,154 $219,508 $224,862

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