Essay
A company purchases equipment to be used in business operations for $250,000.The equipment has a CCA rate of 25%.You intend to sell the equipment in year 8 for a salvage value of $8,000.At the time of sale, you still anticipate having other assets in the class.Tax rate is 35%.Company uses a 12% rate of return.Determine the present value of the incremental tax shields generated.
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