ABC Inc. is considering the purchase of a new machine for $130,000, installed. This machine is included in CCA class 8 (20%). The firm expects to the machine to have a salvage value of zero after six years. Determine the present value of the CCA tax shield if the firm' s marginal tax rate is 25%, its weighted average cost of capital (WACC) is 6% and the firm has other equipment in the asset class. Assume that the half-year rule applies.

$19,090.91

$25,000.00

$24,292.45

$14,035.64