Consider an asset with an initial cost of $100,000 and no salvage value. Compute the difference in the present value of the tax shields if CCA is calculated at a 20% declining balance compared to if CCA is calculated using a five-year, straight-line write-off. For your calculation use 30% as the tax rate and 16% as the required return. (The half-year rule applies.) The difference, to the nearest dollar, is

A S1.724

B $4,129

C S4.483

d. 59,517

e.$49,969

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