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What is the present value of the tax savings

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Question - Strauss Corporation is making a $87,550 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 14 percent.

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

Reference no: EM132032112

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