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S&S Corporation is making $65,000 investment in equipment with a 5-year life. The company uses the straight-line method of depreciation and has a tax rate of 40%. The company's required rate of return is 12 percent.

What is the present value of the tax savings related to depreciation of equipment?

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M9877487

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