Jambo & Sons, Ltd$.$ purchases equipment to be used in business operations for $$23,000.$

The equipment has a CCA rate of $20\%.$ They intend to sell the equipment in year $10$ for a

salvage value of $$5,000.$ At the time of sale, they still anticipate having other assets in the

class. Tax rate is $34\%.$ The company uses a $9\%$ rate of return. Determine the present

value of the incremental tax shields generated.

a$.$ $$5,393\mathrm{.}10$

b$.$ $$5,665\mathrm{.}69$

c$.$ $$4,675\mathrm{.}21$

d$.$ $$5,170\mathrm{.}45$

e$.$ $$4,400\mathrm{.}20$