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What is the present value of the tax savings

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Question - Westerngear is expected to have operating losses of 250,000 in its first year of business and 150,000 in its second year. The company expects to have income before taxes of 300,000 in its third year and 450,000 in its fourth year. The company's required rate of return is 12%.

What is the present Value of the tax savings related to depreciation of the equipment?

Reference no: EM131779261

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