Question 1. Please derive the formula of PVCCATS using the following steps under the following assumptions: If asset class remains open 1+0.5k Sdt. 1 PV tax shield on CCA = d+k 1+k d+k(1+k)" a. The asset class remains open after selling the asset b. Assume we can sell the asset at the end of useful life for the salvage value (S) which is less than the initial cost (C) Catex x Step 1: Show me what a growing perpetuity cash flows look like in a time line and how to compute the PV of such a perpetuity. Also please explain the characteristics of cash flows in the growing perpetuity. Step 2: Show me how the perpetuity example that you provided in the step 1 can be used to derive the first part of the PVCCATS. (Hint: here you need to show me the UCC/CCA table, and how the growing perpetuity formula applied in this case) Step 3: show me how the assumption a) and b) can be used to explain the second part of the PVCCATS. (Hint: I have mentioned about it during the lecture when deriving the formula) Step 4: now you have explained the first part and the second part of PVCCATS, please write the completed formula below