A Canadian company has just paid $100,000 for an asset that will go into the Class 10 asset pool with a CCA rate of 30%. Their tax rate is 40%. They have a cost of capital of 15%.What is the present value of the CCA tax shield for the first two years of operation?

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The Answer of A Canadian company has just paid $100,000 for an asset that will go into the Class 10 asset pool with a CCA rate of 30%. Their tax rate is 40%. They have a cost of capital of 15%.What is the present value of the CCA tax shield for the first two years of operation?

A Canadian Company Has Just Paid $100,000 for an Asset