New equipment at the start of the project

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Reference no: EM131871594

Your company is considering a new project that will require 8000,000 of new equipment at the start of the project. the equipment will have a depreciable life of 6 years and will be depreciated to a boolk value of 152,000 using straight line depreciation. the cost of capital is 13 % and the firms tax rate is 30 %. estimate the present value of the tax benefits from depreciation.

Reference no: EM131871594

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