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iloveyofacexx3 iloveyofacexx3
wrote...
Posts: 467
5 years ago
Year 0Year 1Year 2Year 3Year 4Year 5 Year 6Year 7
MACRS
Depreciation Rate14.29%24.49%17.49%12.49%8.93%8.92%8.93%4.46%

Massive Amusements, an owner of theme parks, invests $60 million to build a roller coaster. This can be depreciated using the MACRS schedule shown above. How much less is the depreciation tax shield for year 4 under MACRS depreciation than under 7-year, straight-line depreciation,if the tax rate is 40%?

▸ $1,077,429

▸ $2,143,200

▸ $6,428,229

▸ $1,285,371
Textbook 
Fundamentals of Corporate Finance

Fundamentals of Corporate Finance


Edition: 2nd
Authors:
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wrote...
5 years ago
$1,285,371
wrote...
5 years ago
Thanks for your help!
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