With a higher CCA rate,the present value of tax savings increases.

Name: With a higher CCA rate,the present value of tax savings increases.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The higher the CCA (capital cost allowance) rate, the greater the amount that can be deducted on a tax return, resulting in higher tax savings in the current year. This is because CCA is a tax deduction that reflects the decline in value of an asset over time, and a higher rate means a faster asset write-off and thus more tax savings.

With a Higher CCA Rate,the Present Value of Tax Savings