You firm just bought a new machine. The machine cost $1,100,000. The machine will be...
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You firm just bought a new machine. The machine cost $1,100,000. The machine will be operated for 6 years. It will then be sold for its salvage value of $280,000. The CCA rate is 26%. The tax rate is 10%. The required rate of return is 10% compounded annually. The asset class will remain open. Assume the half-year rule is in effect. What is the present value of the CCA tax shield? Your answer should be accurate to two decimal places.
65123.72
67125.35
64418.42
63124.55
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