Calculate the depreciation tax shield for this project

Reference no: EM13263424

Your firm need a computerized machine tool lath which cost $50,000,requires $10,000 in installation and another $12,000 in maintenance its 3 year life. After 3 years this machine will be replaced. The machine falls into the MACRS 3 year class life category. Assume a tax rate of 30% a discount rate of 12%.

Calculate the depreciation tax shield for this project in year 1?

Reference no: EM13263424

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