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Assume You Have Calculated the Present Value of the Tax

Question 128

Multiple Choice

Assume you have calculated the present value of the tax shield from CCA for a lessor. If the lessor's cost of capital used in this calculation was reduced, how would the present value of the tax shield from CCA change?


A) It would increase
B) It would decrease
C) It would not be affected
D) Cannot be determined with the information provided

Correct Answer:

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