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(2 marks) Consider an equipment purchase of $120,000 today (during 2019) that will be put into operation in its 3rd year (during 2021). The equipment
(2 marks) Consider an equipment purchase of $120,000 today (during 2019) that will be put into operation in its 3rd year (during 2021). The equipment is expected to be operational for 10 years. In 2025 the equipment will require an overhaul costing $30,000. Using the CCA method (50% rule applies to both equipment and overhaul) and assuming a CCAequipment rate of 30% and CCAoverhaul rate of 20 %, what is the total projected CCA for 2029: CCA2029? MARR = 10% (Rounded up/down to the nearest dollar figure) 05285 06472 08286 02167 04363 O None of the above
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