A machine will cost $725,000. After six years of useful life, the machine will have no salvage value. The machine is placed into the 30% CCA asset class and qualifies for the Accelerated Investment Incentive. The companys cost of capital is 18% and its income tax rate is 25%. Calculate the present value of its CCA tax shield.

Select one:

a. $119,715

b. $120,974

c. $110,511

d. $121,921

e. $116,035