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

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 project's 3-year life. What is the CCA tax shield for Year 1? Equipment cost $60,000 Equipment Setup Cost $5.000 Annual cash operating costs $25.000 Tax rate 30.0% $5,850 $2,925 $6,825 $2690 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 project's 3-year life. What is the CCA tax shield for Year 1? Equipment cost $60,000 Equipment Setup Cost $5.000 Annual cash operating costs $25.000 Tax rate 30.0% $5,850 $2,925 $6,825 $2690

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