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Your firm needs a computerized machine tool lathe which costs
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Your firm needs a computerized machine tool lathe which costs $58,000 and requires $12,800 in maintenance for each year of its 3-year life. After three years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 35 percent and a discount rate of 13 percent.


Calculate the depreciation tax shield for this project in year 3. 

 







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This question was answered on: Feb 21, 2020

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