Question 1 12 Points Encor Ltd. purchased new machinery worth $630,000. The salvage value of the machinery is $85,000 after 7 years. The machine will allow the company to increase production by 45,000 units per year at $35 per unit. Variable costs per unit are $15 and the fixed costs per year are $110,000. The required rate of return on the project using this machinery is 12% and a marginal tax rate of 42% is applicable to the company. (a) Calculate the depreciation value per year of the machinery using the straight-line depreciation method. (2 points) (b) Develop the Pro-Forma Statement of Comprehensive Income for the next year. (6 points) (c) If the CCA rate applicable on the machinery is 22%, compute the present value of the CCA tax shield for the machinery. (4 points) Use the editor to format your answer Question 2 5 Points