Examlex
Calculate the present value of the depreciation tax shield for an asset with a three-year estimated life costing $100,000.The firm has a 35 percent tax rate and a 10 percent cost of capital.Its CCA is 30 percent declining balance with a half-year rule.Compare this present value to that calculated for straight-line depreciation with no salvage value in both cases.
Shift Demand
A change in the quantity demanded at every price level, resulting in the demand curve moving left or right.
Complement
A good or service that is used together with another, where an increase in demand for one leads to an increase in demand for the other.
Substitute
A product or service that can be used in place of another to satisfy similar needs or desires.
Equilibrium
A state in which market supply and demand balance each other, resulting in stable prices and quantities.
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