Assume You Have Calculated the Present Value of the Tax

question 128

Multiple Choice

Assume you have calculated the present value of the tax shield from CCA for a lessor. If the lessor's cost of capital used in this calculation was reduced, how would the present value of the tax shield from CCA change?

• A) It would increase
• B) It would decrease
• C) It would not be affected
• D) Cannot be determined with the information provided

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