Question: A machine will cost $ 6 2 5 , 0 0 0 . After six years of useful life, the machine will have no salvage

A machine will cost $625,000. After six years of useful life, the machine will have no salvage value. The machine is placed into the 25% CCA asset class and qualifies for the Accelerated Investment Incentive. The company's cost of capital is 17% and its income tax rate is 30%.Calculate the present value of its CCA tax shield.Select one: a. $121,921 b. $110,511 c. $119,715d. $116,035e. $120,974

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