The CCA tax shield - a unique CMA invention

This was one of the most original contributions from the old RIA/CMA days, when we were taught to take a "big picture" approach to capital investment appraisal. Sadly, that part of the old Body of Knowledge has not been carried over into the new CPA library.

I composed this several years ago to provide the complete mathematical proof behind the CCA tax shield formula, and why it was so elegant. If you want to find the original book it came from, here is the citation:

C. Geoffrey Edge; V. Bruce Irvine (1981). A Practical Approach to the Appraisal of Capital Expenditures. Hamilton: Society of Management Accountants of Canada. ISBN 0-920212-29-8.