ABC Corp. invests $85,100 on new equipment for a project lasting 5 years. The equipment belongs in a 20% CCA class and the half-year rule applies. The firm also adds $4,080 to their net working capital which is recovered in 5 years. ABC cost of capital is 11.20% and the tax rate is 40%. What is the present value of the CCA tax shield over the project life?

Answer rating: 100% (QA)

Heres how we can find the present value Calculate the annual CCA CCA rate 20 given Cost of equipment ... View the full answer