A firm is considering the purchase of a new equipment costing $6,052,025 which qualifies for a 26% CCA rate. This equipment has a 4-year life after which it can be sold for $621,980. The firm can lease it for $1,531,680 per year for its useful life. Assume that the firm makes payments at the end of the year, the asset pool remains open, the tax rate is 41%, and the pre-tax cost of borrowing is 6.34%. What is the present value of the CCA tax shield?

Question 10 options:

$1,847,364

$1,895,979

$1,944,593

$1,993,208

$2,041,823