Suppose that , and are estimators of the parameter
PV(Resale Value) = C - TC (Resale Value – Book Value) = $20,000 – 0.34 ($20,000 - $30,000) = $23,400. Calculate the incremental depreciation. Calculate the depreciation tax shield generated by the new harvester less the forgone depreciation tax shield from the old harvester. Let P … ................
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