Assume a tax rate of 30 and a discount rate of 13 what is


Your firm needs a machine which costs $230,000, and requires $38,000 in maintenance for each year of its 5 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 5-year class life category. Assume a tax rate of 30% and a discount rate of 13%. What is the depreciation tax shield for this project in year 5?

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Finance Basics: Assume a tax rate of 30 and a discount rate of 13 what is
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