Purchase Solution

CCA rate

Not what you're looking for?

Ask Custom Question

True of False

Other factors held constant, higher CCA rates have the effect of reducing taxes and increasing cash flows.

Purchase this Solution
Solution Summary

CCA rate is studied.

Solution Preview

True.

The higher CCA rate will result is lower taxes and higher cash ...

Purchase this Solution
Free BrainMass Quizzes
Operations Management

This quiz tests a student's knowledge about Operations Management

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Introduction to Finance

This quiz test introductory finance topics.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

View More Free Quizzes
Related BrainMass Solutions

  • Present Value of infinite CCA tax savings

    Apply the formula for the Present Value of infinite CCA tax savings = [(purchase cost)(cca rate)(tax rate)/(rate of return + tax rate)][1+ (0.5 *rate of return)/1+rate of return] = [(75,000)(0.2)(0.4)/(0.1+.2)][(1.05/1.1) = 19,091 Present Value

  • Amortization and Excess Earnings

    depreciation CCA = d * Cost of asset where: d is the depreciation rate CCA for 12/31/10 = (0.2/2) * 300000 = 30000 CCA for 2011 = 0.2 * (300000 - 30000) CCA = $ 54000 Double declining balance depreciation Depreciation rate = 55000 * 2 *100 =

  • Dihybrid cross analysis

    CcA^YA x ccA^YA CA^Y CA cA^Y cA cA^Y lethal CcA^YA lethal ccA^YA cA CcA^YA CcAA ccA^YA ccAA cA^Y lethal CcA^YA lethal ccA^YA cA CcA^YA CcAA ccA^YA

  • Financing/Investing - Beta Value

    The manufacturing assets in question fall into CCA class 43 (30% CCA rate), assume that there is the 1 first year rule and ignore the value that is left in the 2 UCC pool at the end of the project.

  • Capital budgeting

    Assume a 35% tax rate and a 12% discount rate. a. What is the depreciation tax shield in the third year for this project? b. What is the present value of the CCA tax shield? c.

  • Appraising replacement decision by NPV

    The applicable discount rate is 14%, the CCA rate is 20% and the tax rate is 35%. Should RBC purchase the new bottling machine?

  • Calculating NPV, optimal capital structure, WACC and Ke

    tax shields I assume that new machine is never sold, A=Purchase value of asset= $2.20 million T=Tax Rate=30% d=CCA rate=15% k=discount rate=10% PV of CCA tax shields=((T*d*A)/(k+d))*(1+0.5*k)/(1+k)= $0.3870 million NPV of new machine

  • Disease and Case Management

    Organizations may be considered a member or partner of CCA through an application process, and by demonstrating commitment to the goals of CCA.

  • Current Costing Model

    Current Costing Accounting (CCA): CCA is a valuation method where goods are valued at their actual market value at the time of the production of the good in question. What are the strengths and weaknesses of the current costing model?

View More Related Solutions