Question 7 (25 points) [25 Marks] Earthworks is an excavation company which started its operations in the year 2008. The board of governors set the Minimum Acceptable Rate of Return for the company at 12% after-tax. Due to the nature of their work, Earthworks own equipment which are in CCA class 8 (CCA rate = 20 %). For the 5 years following its inception, Earthworks purchased 4 Machines, two of which they ended up selling. The record of their transactions is as summarized below: Tax Year Transaction Dollar Value of transaction 2008 Purchase of Machine A $75,000 2009 Purchase of Machine B $100,000 2009 Sale of Machine A $30,000 2010 Purchase of Machine C $60,000 2011 Sale of Machine B $45,000 2012 Purchase of Machine D. $55,000