Flower City Inc $($FCI$)$ is considering the purchase of a new machine for $$50,000,$ installed. FCI will use the CCA method to depreciate the machine. This machine is included in CCA class $8(20\%).$ FCI expects to sell the machine at the end of its $4-$year operating life for $$10,000.$

a$)$ If FCI$$s marginal tax rate is $40\%,$ what will be the present value of the CCA tax shield when it disposes of the machine at the end of Year $4?$ Assume that the relevant discount rate is $10\%.$

PV of Tax shield $=\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

b$)$ Would your answer change if the machine is designed $($engineered life$)$ to last $10$ years?

$($Answer Yes$/$No$)$

c$)$ Would your answer change if the machine has a design fault that takes $$10,000$ to repair in year $3?$

$($Answer Yes$/$No$)$