Compute what is the present value of the tax savings

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Reference no: EM131983592

Problem

Strauss Corporation is making a $85,050 investment in equipment with a 5-year life.The company uses the straight-line method of depreciation and has a tax rate of 40 percent. The company's required rate of return is 13 percent. What is the present value of the tax savings related to depreciation of the equipment?

Reference no: EM131983592

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