A company purchases an asset that costs 30000 this asset


A company purchases an asset that costs $30,000. This asset qualifies as three-year property under MACRS. The company uses an after-tax discount rate of 13% and faces a 40% income tax rate. Use the appropriate present value factors found in Appendix C, Table 1, to determine the present value of the depreciation deductions for this firm over the specified four-year period. Refer to Exhibit 12.4. (Round "MACRS %" to 2 decimal places (.1234 = 12.34%), "PV factor" to 3 decimal places. Round your answers to 2 decimal places.)

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Operation Management: A company purchases an asset that costs 30000 this asset
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