pls hurry and answer
Spherical Manufacturing recently spent $10 milion to purchase some equipment used in the manufacture of disk drives 7 mis equipment has a CCA rate of 45% and Spherical's marginal corporate tax rate is 29% a. What are the annual CCA deductions associated with this equipment for the first five years? b. What are the annual CCA tax shields for the first five years? c. What is the present value of the first five CCA tax shields if the appropriate discount rate is 12% per year? d. What is the present value of all the CCA tax shields assuming the equiment is never sold and the appropriate discount rate is 12% per year? e. How might your answer to part (d) change it Spherical anticipates that its marginal corporate tax rate will increase substantially over the next five years? a. What are the annual CCA deductions associated with this equipment for the first five years? The CCA deduction for year 1 is 5 (Round to the nearest dollar.) The CCA deduction for year 2 is $ (Round to the nearest dollar) The CCA deduction for year 3 ks 5 (Round to the nearest dollar) The CCA deduction for year 4 is 5 (Round to the nearest dollar) The CCA deduction for year 5 is 5 (Round to the nearest dollar) b. What are the annual CCA tax shields for the first five years? The CCA tax shield for year 1 is 5 (Round to the nearest dollar) The CCA tax shield for year 2 is 5 (Round to the nearest dollah) The CCA tax shield for year 3 is $ (Round to the nearest dollar) The CCA tax shield for year 4 is $ (Round to the nearest dollar) The CCA tax shield for year 5 is 5 . (Round to the noarest dollar) c. What is the present value of the first five CCA tax shields if the appropriate discount rate is 12% pet year? The present value of the first five CCA tax shields is 5 (Round to the nearest dollar) d. What is the present value of all the CCA tax shields assuming the equiment is never sold and the appropriate discount rate is 12% per year? The present value of all the CCA tax shields is 5 (Round to the nearest dollar) 6. How might your answer to part (d) change il Spherical anticipates that its marginal corporate tax rate will increase substantially over the noxt five years? (Solect the best choice bolom) A. If the marpinal corporate tix rate increaseo over the next five years, the PV of the CCA tax shilolds will be lower than what: ho calculated in part (d) B. It the marginal colporale tax tale increases over the next five years, the PV of the CcA tax shieids will be the same as What is caiculatod in part (d) c. It the marginal corporate tax rate increases over the nexd five years, the PV of the CCA tax shields well be higher than. what is calculated in part (d)
