corporate finance

ABC Products needs to replace its rawhide tanning and molding equipment. It can be used for five years and will have no salvage value. The equipment costs $930,000. The firm can lease it for $245,000 a year, or it can borrow the money to purchase the equipment at 6%. The firm's tax rate is 40%. The CCA rate is 20% (Class 8). What is the present value of the depreciation tax shield? Select one: O a. $336,959 O b. $377,177 o c. $309,777 O d. 301,242 $343,885 O e