Consider the case of IQMetrics Corporation. IQMetrics is proceeding with a new expansion project that is anticipated to have a four-year life span. The project calls for the purchase of a building for $5 million and equipment valued at $3 million. IQMetrics's corporate tax rate is 30%, and its discount rate is 10%.

 

Upon completion of the project, the company expects the salvage values to be $4 million and $2 million, respectively. The capital cost allowance (CCA) rate for the asset classes as given by the Canada Revenue Agency (CRA) are buildings, 4%; equipment, 20%; and manufacturing assets, 30%. 

Calculate the present value for the total tax shield?