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Strauss Corporation is making a $76,900 investment in equipment with a 5-year life. The company uses the straight-line method of depreciation and has a tax rate of 40 percent. The company's required rate of return is 16 percent.

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

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M951406

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