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What is present value of tax savings related to depreciation

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Reference no: EM132986890

H55 Corporation is making a $ 105,900 investment in equipment with a 5-year life. The company uses the straight-line method of depreciation and has a tax rate of 20 percent. The company's required rate of return is 15 percent.

Problem 1: What is the present value of the tax savings related to depreciation of the equipment?

Reference no: EM132986890

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