A construction company spends 14 million to purchase a new


A construction company spends $1.4 million to purchase a new crane. The crane will have a capital cost allowance (CCA) rate of 25%. If the opportunity cost of capital is 7%, and the company's marginal tax rate is 20%, what is the present value of the CCA tax shield?

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Financial Management: A construction company spends 14 million to purchase a new
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