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Why do we add the result from the CCA tax shield to the NPV analysis?

agoldberg2011

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A month ago

Why do we add the result from the CCA tax shield to the NPV analysis?

Why do we add the result from the CCA tax shield to the NPV analysis?

▸ The CCA tax shield represents tax cash flow saved by depreciating the asset.

▸ The CCA tax shield represents tax cash flow saved by expensing the interest.

▸ Tax shield is a cost.

▸ None of the above

Textbook

Corporate Finance

Corporate Finance

Edition: 5^th

Author: Booth

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kuteeme

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agoldberg2011 Author

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A month ago

Good timing, thanks!

amandamraz

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Yesterday

Smart ... Thanks!

jamesbove

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2 hours ago

Thanks for your help!!

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