Find what is the present value of the tax savings

Reference no: EM131983551

Problem

Strauss Corporation is making a $85,250 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 1.3 percent. What is the present value of the tax savings related to depreciation of the equipment?

Reference no: EM131983551

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