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PART #1

Callaho Inc. bought a new sewing machine for $38,000,000 that will be depreciated in asset class 39, which has a CCA rate of 30 percent. This firm's tax bracket is 30 percent.

PART #2:

PART #3

Find the CCA amount each year for the next three years. Remember to apply the half-year rule in your calculation. If the sewing machine is sold after 3 years for $17,000,000, what will be the after-tax proceeds on the sale if the cost of capital is 13 percent? Assume that Callao Inc. has no other assets in class 39. Cash flows from operations = $ ___