Solution-Depreciation tax shield for project in 3 years

Depreciation tax shield for project in 3 years

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Reference no: EM132780736

Your firm needs a machine which costs $280,000 and requires $43000 in maintenance for each year of 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 35% and a discount rate of 13%. what is the depreciation tax shield for this project in 3 years?

Reference no: EM132780736

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Depreciation tax shield for project in 3 years

Reference no: EM132780736

Reference no: EM132780736

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