Assume you have just calculated the present value of the tax shield from CCA for a lessee to be $21552. If the tax rate you use in this calculation was increased by 10% (not 10 percentage points) , howwould the present value of the tax shield from CCA change?
A) Increase by 10%
B) Increase by more than 10%
C) Decrease by more than 10%
D) Decrease by 10%
Correct Answer:
Verified
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