A firm is considering the purchase of a new equipment costing $8,897,065 which qualifies for a 42% CCA rate. This equipment has a 4-year life after which it can be sold for $1,199,100. The firm can lease it for $2,396,480 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 25%, and the pre-tax cost of borrowing is 10.18%. What is the present value of the CCA tax shield? $1,475,806 $1,516,800 $1,557,795 $1,598,789 $1,639,784 A firm is considering the purchase of a new equipment costing $8,897,065 which qualifies for a 42% CCA rate. This equipment has a 4-year life after which it can be sold for $1,199,100. The firm can lease it for $2,396,480 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 25%, and the pre-tax cost of borrowing is 10.18%. What is the present value of the CCA tax shield? $1,475,806 $1,516,800 $1,557,795 $1,598,789 $1,639,784