Multiple Choice
Your firm needs a machine which costs $90,000, and requires $30,000 in maintenance for each year of its 5-year life. After 5 years, this machine will be replaced. The machine falls into the MACRS 5-year class life category. Assume a tax rate of 35% and a discount rate of 13%. What is the depreciation tax shield for this project in year 5?
A) $471.74
B) $1,347.84
C) $3,628.80
D) $6,739.20
Correct Answer:
Verified
Correct Answer:
Verified
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