Calculate the present value of the cca tax shield for asset

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Reference no: EM132796669

Problem 1: Calculate the present value of the CCA Tax Shield for an asset costing $200,000, CCA Rate of 25%, Salvage Value of $8000, tax rate of 35%, a cost of capital discount rate of 12%, and a 20 year term.

Multiple Choice

Option 1: $40,954
Option 2: $42,522
Option 3: $56,717
Option 4: $42,856

Reference no: EM132796669

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