Smidt and Vas is an infrastructure investment firm that is currently analyzing a new project which will generate an annual before tax operating cash flow of $500,000. The capex for the project is $4M, the firm has a tax rate of 25% and the CCA depreciation rate for this asset is 30%. Smidt and Vas has a cost of capital of 10%.

What is the projects year 2 PV of CCA tax shield?

A $600,000

B $210,744

C $3,400,000

D $134,110