Requires 12400 in maintenance for each year of its 3-year


Requires $12,400 in maintenance for each year of its 3-year life. After three years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 35 percent and a discount rate of 11 percent. Calculate the depreciation tax shield for this project in year 3. (Round your answer to 2 decimal places.)

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Financial Management: Requires 12400 in maintenance for each year of its 3-year
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