Solve each of the following parts independently.
1. Lowney Limited has hired a public accounting firm to identify opportunities to reduce their corporate income tax expense. The firm's tax advisory fee will be $250,000. What will be the after-tax cost of the firm's fee if Lowney's tax rate is 30%?
2. Cycling Accessories has introduced a new line of cold-weather apparel, and annual revenues have increased by $600,000. If the company's tax rate is 25%, what is the after-tax benefit from the increased revenues?
3. Solar Solutions has purchased new manufacturing equipment that cost $400,000. Calculate the yearly tax savings from the CCA tax shield for the next three years. Assume that the income tax rate is 30%, the CCA rate is 30%, and the weighted-average cost of capital (WACC) is 12%. Assume that CCA in the first year is subject to the half-year rule?