A company has a 31 December year end and pays corporation tax at a rate of 30%. Corporation tax is payable 12 months after the end of the year to which the cash flows relate. The company can claim tax allowable depreciation at a rate of 25% reducing balance. It pays $1 million for a machine on 31 December 20X4. The company's cost of capital is 10%.
What is the present value of the benefit of the first portion of tax allowable depreciation?
Lashawn
5 months agoWava
4 months agoElmer
5 months agoFannie
5 months agoTrinidad
5 months agoBeckie
6 months agoMicah
4 months agoEmilio
5 months agoThersa
5 months agoCarey
6 months agoCruz
6 months agoCarey
6 months agoMarla
6 months agoDeeanna
5 months agoVenita
5 months agoBilly
5 months agoTruman
5 months agoDwight
5 months agoMee
5 months agoCarri
6 months agoMeghann
6 months agoGail
5 months agoSheridan
5 months agoBerry
5 months agoOlive
5 months ago