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Title: Suppose a project requires a capital investment of $300,000. The project will last for six years, at ... Post by: lilricemunch on Mar 24, 2024 Suppose a project requires a capital investment of $300,000. The project will last for six years, at which time the asset will be sold for $90,000. The asset is a Class 8 asset, with a CCA rate of 20%. The firm's marginal tax rate is 40%. The firm's required rate of return is 8%. Assume the asset class remains open after the asset is sold. What is the present value of the CCA tax savings for the project assuming half-year rule is applicable for CCA in year 1?
▸ $63,472.64 ▸ $66,335.32 ▸ $65,950.56 ▸ $66,720.08 Title: Re: Suppose a project requires a capital investment of $300,000. The project will last for six years, at ... Post by: duankong-fei on Mar 24, 2024 Content hidden
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