A new machine will cost $500,000.It is in a CCA class pool that uses a declining balance rate of 30%.The company's tax rate is 40% and it requires a 15% rate of return on investments.Calculate the present value of the the tax shield the first year assuming the savings occur at year end.
A)$126,998.42
B)$78,214.34
C)$52,173.91
D)$119,765.22
E)$26,086.96

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The Answer of A new machine will cost $500,000.It is in a CCA class pool that uses a declining balance rate of 30%.The company's tax rate is 40% and it requires a 15% rate of return on investments.Calculate the present value of the the tax shield the first year assuming the savings occur at year end.
A)$126,998.42
B)$78,214.34
C)$52,173.91
D)$119,765.22
E)$26,086.96

A New Machine Will Cost $500,000