Ewan Inc. is considering the purchase of a new machine for $14,000, installed. This machine is included in CCA class 8 (20%). The firm expects to the machine to have a salvage value of zero after four years. Determine the present value of the CCA tax shield if the firm' s marginal tax rate is 30%, its weighted average cost of capital (WACC) is 10% and the firm has other equipment in the asset class. Assume that the half-year rule applies.

		$2,673
		$1,375
		$1,604
		$2,291