A restaurant invests $240,000 in a new food truck for mobile lunch sales.The truck will have a capital cost allowance (CCA) rate of 20%.If the opportunity cost of capital is 8.5%,and the restaurant's marginal tax rate is 30%,what is the present value of the CCA tax shield?
A) $48,547
B) $48,000
C) $50,526
D) $35,938
E) $14,400
Correct Answer:
Verified
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