A bakery invests $30,000 in a light delivery truck. The truck belongs to asset class 10 and has a capital cost allowance (CCA) rate of 30%. If the company sold it immediately after the end of year 2 for $22,000, what would be the present value of the overall CCA tax shields, given a tax rate of 40% and a cost of capital of 8%?

Answer rating: 100% (QA)

To calculate the present value of the overall Capital Cost Allowance CCA tax shields we need to foll... View the full answer