ABC Canada Limited is considering a new piece of equipment that costs $100,000. It is a Class 10 asset (30% CCA rate) and would be subject to the half-year rule. ABC’s corporate tax rate is 28% and the company expects at least a 9% return on the investment in the asset.

REQUIRED
What is the cost of the asset after considering the net present value of the tax reductions associated with the capital cost allowance allowed in measuring income for tax purposes?