10. Which of the following will NOT decrease the present value of the CCA tax shields associated with a capital investment project? ____ A) A decrease in the corporate tax rate B) An increase in the discount rate C) A decrease in the CCA rate D) All of the above E) None of the above Hint: 11. If a project is expected to reduce inventory by $150, increase accounts payable by $100 and increase accounts receivable by $10, what kind of effect does working capital have during the life of the project? ____ A) Reduce investment outlay by $240 B) Reduce investment outlay by $60 C) Raise investment outlay by $40 D) Working capital has no effect during the life of this project Hint: 12. M&M is considering the purchase of a new machine for $50,000, installed. M&M will use the CCA method to depreciate the machine. This machine is included in CCA class 8 (20%). MM expects to sell the machine at the end of its 4-year operating life for $10,000. If M&M