Paragraph G: A proposed cost-saving device has an installed cost of $620,000. It is in Class 8 (CCA rate = 20%). It will actually function for five years; at which time it will have no value. There are no working capital consequences from the investment, and the tax rate is 35%. 24 Refer to paragraph G. If we require an 11% return, what is the PV of the capital cost allowance tax shield (CCATS)? a) $198,290.24 b) $99,933.19 c) $133,063.06 d) $160,334.42 25 Refer to paragraph G. Suppose the device will be worth $90,000 in salvage value (before taxes). What is the new PV of CCATS? a) $62,432.54 b) $121,002.60 c) $141,294.20 d) $158,457.29