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Volo Ltd Has Recently Purchased 2 Machines at $50 000

Question 56

Multiple Choice

Volo Ltd has recently purchased 2 machines at $50 000 each.Each machine has a useful life of 5 years,and will be fully depreciated at the end of their useful lives.The government provides an investment allowance of 15 per cent.The tax rate is 30 per cent.The net cash flow impact of the investment allowance is:


A) $900
B) $4500
C) $5250
D) $15 000

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