First the amount borrowed of.doc

First the amount borrowed of.doc - First the amount...

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First the amount borrowed of $1,600,000 is tax deductable because it is associated with purchase of equipment. This is a policy of Australian Government of encouraging more investments thus increase the number of jobs that the economy can create. Nemec Pty Lid on its side should take such advantage and make the investments so that it can enjoy reduced cost of capital and thus be in a position to increase its shareholders’ wealth 1 . The decision of the government as pertain capital investments is a good indication to make the country more enterprising and thus encourage most of his populations to create more jobs in the country. Depreciation will another key item that Nemec Pty Ltd shall enjoy tax deduction on it.
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