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question 68

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Use the table for the question(s) below.
Use the table for the question(s) below.    -Visby Rides,a livery car company,is considering buying some new luxury cars.After extensive research,they come up with the above estimates of free cash flow from this project.The cars belong to asset class 10 and have a capital cost allowance (CCA) rate of 30%.What is the present value of the overall CCA tax shields,given that the cost of capital is 10%,and the company faces a marginal tax rate of 25%? A) $32,562 B) $53,693 C) $93,465 D) $150,000 E) $162,452
-Visby Rides,a livery car company,is considering buying some new luxury cars.After extensive research,they come up with the above estimates of free cash flow from this project.The cars belong to asset class 10 and have a capital cost allowance (CCA) rate of 30%.What is the present value of the overall CCA tax shields,given that the cost of capital is 10%,and the company faces a marginal tax rate of 25%?


Definitions:

Personnel Policies

Guidelines and procedures related to the management of employees within an organization.

Recruiter Traits

The set of characteristics or qualities that are effective for someone who is responsible for identifying, attracting, and hiring talent for jobs.

Due-Process Policy

A policy that ensures fair treatment through a formal process for employees facing disciplinary action, ensuring that rights to a fair hearing and an explanation of the evidence are upheld.

Promote From Within

A hiring policy favoring the advancement of current employees to higher positions over bringing in external candidates.

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