A New Machine Will Cost $1,800,000

question 8

Multiple Choice

A new machine will cost $1,800,000.It is in a CCA class pool that uses a declining balance rate of 30%.The company's tax rate is 38% and it requires a 9% rate of return on investments.Calculate the present value of the the tax shield the first year assuming the savings occur at year end.

• A)$153,577.98
• B)$188,256.88
• C)$167,400.00
• D)$94,128.44
• E)$102,600.00

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Definitions:

HR Forecasting

The practice of predicting future human resources needs of a company based on expected changes in the business environment and workforce.

Human Capital

The abilities, expertise, and experiences held by a person or a group, considered for their worth or expense to a business or nation.

Labour Market

The supply and demand for workers, in which employees look for employment and employers seek candidates.

Numerical Estimate

A quantified approximation or prediction about a certain quantity or outcome.