Question 10 (2 points)

(2 marks) Consider an equipment purchase of $120,000 today (during 2018) that will be put into operation in its 2nd year (during 2019). The equipment is expected to be operational for 10 years. In 2022 the equipment will require an overhaul costing $30,000.

Using the CCA method (50% rule applies to both equipment and overhaul) and assuming a CCA_equipment rate of 30% and CCA_overhaul rate of 20 %, what is the total projected CCA for 2026: CCA₂₀₂₆? MARR = 9%

Within $10 of

Question 10 options:

A	5285
B	6365
C	8286
D	2167
E	4363
F	None of the above