A new machine will cost $1,800,000. It is in a CCA class pool that uses a declining balance rate of 30%. The company's tax rate is 38% and it requires a 9% rate of return on investments. Calculate the cash savings from the tax shield the first year assuming the savings occur at year end.

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The Answer of A new machine will cost $1,800,000. It is in a CCA class pool that uses a declining balance rate of 30%. The company's tax rate is 38% and it requires a 9% rate of return on investments. Calculate the cash savings from the tax shield the first year assuming the savings occur at year end.

A New Machine Will Cost $1,800,000