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3 3 % . a . What are the annual CCA deductions associated with this equipment for the first five years? b . What are
a What are the annual CCA deductions associated with this equipment for the first five years?
b What are the annual CCA tax shields for the first five years?
c What is the present value of the first five CCA tax shields if the appropriate discount rate is per year?
d What is the present value of all the CCA tax shields assuming the equiment is never sold and the appropriate discount rate is per year?
e How might your answer to part d change if Spherical anticipates that its marginal corporate tax rate will increase substantially over the next five years?
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