Montcalm Company is evaluating the purchase of a new machine that costs $435,000, will have a CCA rate of 25%, an estimated useful life of 10 years and a $15,000 terminal disposal price. The companys marginal tax rate is 34%. It is estimated that the machine will increase before tax profits by $85,000 annually. Montcalm requires a 10% after tax rate of return. Based on the above information, calculate the tax shield.

Multiple Choice $100,841 $98,817 $97,364 $99,966 None of the above