your firm needs a computerized machine tool lathe which costs $53000 and require
ID: 1171446 • Letter: Y
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your firm needs a computerized machine tool lathe which costs $53000 and requires $12,300 in maintenance for each ?Tope wekome to Busan |@nw6 SA E Fling @Catalyst Corporate Home.. Tme Clock FiS-nterCope EFT Web o. lack HenrySmatPay Log in Emoyee Self Service e connect ninactions help Save & Ext Subm 9, 10.00 points Your tirm needs a computerred machine tool lathe which costs $53,000 and requires $12,300 in maintenance for each year of its 3 year lite. After theee years, this machine will be replaced The machine tals into the MAGBS 3-year class He category Assume a tax rate of 34 percent and a dscount rate of 12 Calcutate the depreciation tax shield for this project in year 3 (Round your answer to 2 decimal places References eBook & Resources Worksheet 0 Type here to search Cickust redit UnionExplanation / Answer
Machine cost = 53000
Depreciation rate for 3 year MARCS = 14.81%
depreciation tax shield = machine cost * depreciation rate * tax rate = 53000 * 14.81% * 0.34 = $2668.62
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