A B U D E F G 15% 20% 25% 40% 30% 20% 10% 35% 40% 35% 45% 50% 35% 27% 9% 12% 5% 13% 7% 16% 7% $16,100 $12,127 $50,100 $40,090 $800 $14,970 $980 $30,220 $1,198 $2,570 $2,018 $600 $90,670 $3,000 6 5 12 8 10 9 15 $ $ A $ $ A LA $

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Complete the following table. Assume that the asset class is left open, and/or the salvage value is less than the UCC for the entire class.
(Include the half-year rule.) (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and the final answers to 2 decimal places, e.g.
15.75.)
A
B
U
D
E
F
G
CCA Rate Tax Rate
15%
20%
25%
40%
30%
20%
10%
35%
40%
35%
45%
50%
35%
27%
Discount
Rate
9%
12%
5%
13%
7%
16%
7%
Initial
Investment
$16,100
$12,127
$50,100
$30,220
$40,090
$14,970
$90,670
Salvage
Value
$800
$980
$2,570
$1,198
$2,018
$600
$3,000
Project
Life (n)
6
5
12
8
10
9
15
$
$
$
$
$
$
$
PV
(CCA Tax
Shields)
Transcribed Image Text:Current Attempt in Progress Complete the following table. Assume that the asset class is left open, and/or the salvage value is less than the UCC for the entire class. (Include the half-year rule.) (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and the final answers to 2 decimal places, e.g. 15.75.) A B U D E F G CCA Rate Tax Rate 15% 20% 25% 40% 30% 20% 10% 35% 40% 35% 45% 50% 35% 27% Discount Rate 9% 12% 5% 13% 7% 16% 7% Initial Investment $16,100 $12,127 $50,100 $30,220 $40,090 $14,970 $90,670 Salvage Value $800 $980 $2,570 $1,198 $2,018 $600 $3,000 Project Life (n) 6 5 12 8 10 9 15 $ $ $ $ $ $ $ PV (CCA Tax Shields)
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