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ABC Corp. invests $85,100 on new equipment for a project lasting 5 years. The equipment belongs in a 20% CCA class and the half-year rule

ABC Corp. invests $85,100 on new equipment for a project lasting 5 years. The equipment belongs in a 20% CCA class and the half-year rule applies. The firm also adds $4,080 to their net working capital which is recovered in 5 years. ABC cost of capital is 11.20% and the tax rate is 40%. What is the present value of the CCA tax shield over the project life?

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