A rot well g. Interest expense on the debt borrowed to pay the 16. Spherical Manufacturing recently spent $15 million to purchase some equipment used in the manufacture of disk drives. This equipment has a CCA rate of 25%, and arijo Sven Spherical's marginal corporate tax rate is 35%. gea. What are the annual CCA deductions associated with this equipment for the first five years? ruhsau 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 dis- count rate is 10% per year? d. What is the present value of all the CCA tax shields, assuming the equipment is never sold and the appropriate discount rate is 10% per year? e. How might your answer to part (d) change if Spherical anticipates that its mar- ginal corporate tax rate will increase substantially over the next five years?