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Fish Corporation plans to acquire fishing equipment for $600,000 that will depreciated for tax purposes as follows: year 1, $120, 000; year 2,...

Fish Corporation plans to acquire fishing equipment for $600,000 that will depreciated for tax purposes as follows: year 1, $120, 000; year 2, $210,000; year 3-5, $90,000 per year. Fish Corp. uses an 8% discount rate for this type of assets and the company`s tax rate is 40%.

Compute the present value of the tax shield resulting from depreciation?

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