Present Value of Lost Tax Shield (PVLTS)

$$\text{PVLTS}=\text{SV}\times t\times \frac{c}{c+r}$$

Where:

• SV = Salvage Value of the asset
• $t$ = Corporate tax rate
• $c$ = CCA Rate
• $r$ = after tax required rate of return

Highly related to Present Value of Tax Shield (PVTS)