urchase a machine for $200,000 which belongs in a 30% CCA class. What is the present value of the CCA tax shield on the machine if it is sold at the end of the fifth year for $50,000, your tax rate is 35%, and the appropriate discount rate is 10%? Select one: a. $41,964 b. $46,202 c. $66,623 d. $86,994 e. $52,215

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A:

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Q: The a

A: Tax refers to the mandatory charge levied by the government over the income gained by an entity.

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Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.