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What is the value of the cca tax shield

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Reference no: EM133110422

The Sisyphean Company is considering a new project that will have a CCA deduction of $2.5 million in the first year. If Sisyphean's marginal corporate tax rate is 40% and its average corporate tax rate is 30%, then what is the value of the CCA tax shield on the company's new project in year 1?

Reference no: EM133110422

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