Question: Fool Proof Software is considering a new project whose data are shown below. The equipment has an economic life of 3 years, and is in

Fool Proof Software is considering a new project whose data are shown below. The equipment has an economic life of 3 years, and is in the CCA class 10 (30%). Revenues and cash operating costs are expected to be constant over the projects 3-year life. What is the CCA tax shield for Year 1?

Equipment cost	$65,000
Equipment Setup Cost	$8,000
Annual cash operating costs	$25,000
Tax rate	35.0%

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