Macaron Corporation is making a $96,400 investment in equipment with a 5-year life. The company uses the straight-line m
Posted: Sun Jul 03, 2022 1:07 pm
Macaron Corporation is making a $96,400 investment inequipment with a 5-year life. The company uses thestraight-line method of depreciation and has a tax rateof 20 percent. The company’s required rate of returnis 10 percent.What is the present value of the tax savings related todepreciation of the equipment? (Round presentvalue factor calculations to 4 decimal places, e.g. 1.2151 andfinal answer to 0 decimal place, e.g. 125. Enter negative amountsusing either a negative sign preceding the number e.g. -45 orparentheses e.g. (45).)