A machine costs $3 million and has zero salvage value.Assume a discount rate of 10% and a 40% tax rate.The machine is depreciated straight-line over 3 years for tax purpose.What is the present value of depreciation tax savings associated with this machine?
A) $1,200,000
B) $994,741
C) $1,090,900
D) $400,000
Correct Answer:
Verified
Q7: Alpha Car Rental purchased 5 cars for
Q8: Capital budgeting must be placed on an
Q9: NARRBEGIN: Exhibit 9-1
Exhibit 9-1
A project requires an
Q10: Roger is considering the expansion of his
Q11: Johnson Chemicals is considering an investment project.The
Q13: Net working capital decreases when
A) inventory falls,accounts
Q14: A firm is evaluating two machines.Both machines
Q15: Georgia Food is exploring the possibility of
Q16: A machine costs $3 million and has
Q17: Thompson Manufacturing must choose between two types
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents