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RoyalMountain Corp. purchased an asset for $ 2 2 0 , 0 0 0 . The asset will yield incremental annual cash inflows of $

RoyalMountain Corp. purchased an asset for $220,000. The asset will yield incremental annual cash inflows of $20,000 for the next 20 years, starting one year from now. These cash flows were calculated WITHOUT accounting for the CCA tax shield. The company faces a discount rate of 8%, it is in the 30% tax bracket, and the asset is being depreciated at 25% declining balance with a half-year rule and disposed from the existing asset pool at zero salvage. What is the PV of the cash inflows, taking the CCA tax shield into account?

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