Mike Mulligan Excavation Inc. has one Caterpillar 345DL Hydraulic Excavator. It was purchased at the beginning of 20X4 for $352,141. The excavator is in Class 43 with a 30% depreciation rate. Assume that the corporate tax rate is 35% and that Mike’s cost of capital is 10%. What is the present value of tax shields (as of the terminal year) if Mike sells the 345DL at the end of 20X5 for $230,476

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