Jackson Manufacturing company purchased a new piece of equipment at a cost of $200,000 at the beginning of the year. For tax purposes, the machine is a class 8 asset (CCA of 20%). The company has 30% income tax rate. Assume the company follows the "half-year" rule has no other class 8 assets during the period and a required rate of return of 12%.

1. Compute the dollar amount of tax savings from CCA for the 2nd year only.

2. Compute PV of tax savings for the 3rd year