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Longbow Lumber is purchasing a new horizontal resaw at a cost of $450.000. There is an additional $15,000 delivery and installation cost. The machine has

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Longbow Lumber is purchasing a new horizontal resaw at a cost of $450.000. There is an additional $15,000 delivery and installation cost. The machine has a useful life of 8 years and will have no salvage value after 8 years. The machine has a capital cost allowance (CCA) rate of 25%. The marginal corporate tax rate is 30%. What is the CCA tax shield of the machine for year 1? Assume the half-year rule applies. $17,438$16,875 None of the given choices $34,875

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