Solved: What is the depreciation tax shield for this project in, Finance Basics

+44 141 628 6080
[email protected]

What is the depreciation tax shield for this project in

Your firm needs a machine which costs $160,000, and requires $31,000 in maintenance for each year of its 3 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 35% and a discount rate of 15%.

What is the depreciation tax shield for this project in year 3?

Solution Preview :

Prepared by a verified Expert

Finance Basics: What is the depreciation tax shield for this project in

Reference No:- TGS02868458

Now Priced at $10 (50% Discount)

Recommended (96%)

Rated (4.8/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : The correlation between the returns for mickey and mini is

an investor plans to invest 35 percent of her funds in the common stock of mickey company and 65 percent in mini

Q : What factors affect a firms exposure to exchange rate risk

1 what are divas projected profits for the fiscal year ending september 19952 what factors affect a firms exposure to

Q : Calculate the increase in company profits if the jymp

question - foto company manufactures and sells a product called jymp results from last year from the sale of jymp

Q : 1 what is the difference between the operating cycle and

need some help understanding the following1 what is the difference between the operating cycle and cash cycle2 what is

Q : What is the depreciation tax shield for this project in

your firm needs a machine which costs 160000 and requires 31000 in maintenance for each year of its 3 year life after 3

Q : Assess the use of financial persuasion to support the

article ten ways to create shareholder value by alfred rappaportwrite a 3- to 4-page critique of rappaports 2006 cover

Q : The firm has no preferred stock outstanding what is leash n

leash n collar reported a profit margin of 88 total asset turnover ratio of 23 times debt-to-equity ratio of 083 times

Q : Jensen associates provides marketing services for a number

problem - multiple-level break-even analysisjensen associates provides marketing services for a number of small

Q : The discount rate used to evaluate such a business is 145

you are currently considering to buy a service station which will be in operation for 10 years if purchased the service

1923987

Questions
Asked

3,689

Active Tutors

1429760

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Asked Questions

Discuss patient with athsma about use of bronchodilators

You're instructing a patient with athsma about the use of bronchodilators. You should teach the patient which one?

Discuss new forms of advertising changing opdps work

How have social media and other new forms of advertising changing OPDP's work?

Observing and reporting a correctional clients behavior

Observing and reporting a correctional client's behavior is extremely important, to ensure they receive the right mental health care.

Discussion about improve patient satisfaction scores

You are trying to improve patient satisfaction scores in your hospital's emergency department. You decide to poll 40 patients a day for three weeks.

Problem concerning about the risk for stroke

Sam is concerned about his risk for his stroke since his dad died of stroke at age 57 based on the following information why would you recommend

Patient presented with acute-onset abdominal pain

You are on your 5th straight duty in the Urgent Care and you are seeing a 18 yo may who presented with acute-onset abdominal pain for 2 days.

Discuss - male with a history of moderate persistent asthma

A nurse is caring for an 8-year-old male with a history of moderate persistent asthma. He is accompanied by his mom and dad who reported