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Freddy purchased $500,000 worth of 5-year equipment for use in his business. What is the...

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Accounting

Freddy purchased $500,000 worth of 5-year equipment for use in his business. What is the present value of the savings under bonus depreciation (compared to MACRS depreciation)? Freddys marginal tax rate in all years is 40 percent and his cost of capital is estimated to be 10 percent.

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