Assume a tax rate of 30 and a discount rate of 13 what is


Your firm needs a machine which costs $190,000, and requires $40,000 in maintenance for each year of its 7 year life. After 5 years, this machine will be replaced. The machine falls into the MACRS 7-year class life category. Assume a tax rate of 30% and a discount rate of 13%. What is the depreciation tax shield for this project in year 7?

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Finance Basics: Assume a tax rate of 30 and a discount rate of 13 what is
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