The cost of the machine is $14, 475. The CCA rate is 29% After 9 years, the machine is sold for $719 which is less than the UCC of the asset class. If there are other assets in the asset class, the discount rate is 7% and the tax rate is 39%, what is the present value of the CCA tax shield of this machine? (Assume 150%-rule). "Keep at least 4 decimal places for all calculations. Do not enter your answers in percentage. All answers are in decimal.*.
The cost of the machine is $14, 475. The CCA rate is 29% After 9 years, the machine is sold for $719 which is less than the UCC of the asset class. If there are other assets in the asset class, the discount rate is 7% and the tax rate is 39%, what is the present value of the CCA tax shield of this machine? (Assume 150%-rule). "Keep at least 4 decimal places for all calculations. Do not enter your answers in percentage. All answers are in decimal.*.
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
Problem 1PS
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The cost of the machine is $14, 475. The CCA rate is 29% After 9 years, the machine is sold for $719 which is less than the UCC of the asset class. If there are other assets in the asset class, the discount rate is 7% and the tax rate is 39%, what is the
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