A new machine will cost $720,000.It is in a CCA class pool that uses a declining balance rate of 20%.The company's tax rate is 42% and it requires a 12% rate of return on investments.Calculate the present value of the the tax shield the first year assuming the savings occur at year end.
A)$60,480.00
B)$54,000.00
C)$27,000.00
D)$30,240.00
E)$37,285.71

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The Answer of A new machine will cost $720,000.It is in a CCA class pool that uses a declining balance rate of 20%.The company's tax rate is 42% and it requires a 12% rate of return on investments.Calculate the present value of the the tax shield the first year assuming the savings occur at year end.
A)$60,480.00
B)$54,000.00
C)$27,000.00
D)$30,240.00
E)$37,285.71

A New Machine Will Cost $720,000