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Business, 15.04.2020 01:44 jeffersonpaul283

A company has $3,000 per year in depreciation over a 6 year period. Due to tax code changes, the company can switch to bonus depreciation and expense the entire investment immediately. What is the increase in PV of cash flows given a 21% corporate tax rate and a discount rate of 9%? Assume the bonus depreciation is taken at the end of year 1.

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A company has $3,000 per year in depreciation over a 6 year period. Due to tax code changes, the com...
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