A business purchased equipment at the cost of $750,000. The equipment will be placed in a 30% CCA asset class. The asset will qualify for the Accelerated Investment Incentive. The expected salvage value of the asset at the end of year 5 is $125,000. The companys marginal tax rate is 20% and the required return of its investors is 18%. What is the present value of the CCA tax shield, including the loss of the tax shield due to salvage value?

Select one:

a. $94,113

b. $94,460

c. $94,507

d. $94,294

e. $94,071