1. You purchase a machine for $200,000 which belongs in a 30% CCA class. What is the present value of the CCA tax shield on the machine if it is sold at the end of the sixth year for $24,000, your tax rate is 35%, and the appropriate discount rate is 10%?

2. You are considering a project that costs $1500 and has expected cash flows of $550, $605, and $665.50 over the next three years. If the appropriate discount rate for the project's cash flows is 10%, what is the net present value of this project?

3. A firm has a tax rate of 35%, an unlevered rate of return of 12%, total debt of $2,000, and an EBIT of $330.00. What is the unlevered value of the firm?

4. ABC Products needs to replace its rawhide tanning and molding equipment. It can be used for five years and will have no salvage value. The equipment costs $930,000. The firm can lease it for $245,000 a year, or it can borrow the money to purchase the equipment at 6%. The firm's tax rate is 40%. The CCA rate is 20% (Class 8).What is the present value of the depreciation tax shield?

5. A project costs $500 and has cash flows of $110 for the first three years and $75 in each of the project's last five years. What is the payback period of the project?