Advanced Engineering Mathematics
10th Edition
ISBN: 9780470458365
Author: Erwin Kreyszig
Publisher: Wiley, John & Sons, Incorporated
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Your firm needs a computerized machine tool lathe which costs $58,000 and requires $12,800 in maintenance for each year of its 3- year life. After three years, this machine will be replaced. The depreciation rate for year-3 is 14.81%, and neither bonus depreciation nor Section 179 expensing can be used. Assume a tax rate of 21 percent and a discount rate of 13 percent.
Calculate the depreciation tax shield for this project in year three ( round answer to 2 decimal places )
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