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…
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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?
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