Spherical Manufacturing recently spent $$15$ million to purchasome

equipment used in the manufacture of disk brakes. This equipment has a CCA rate of $25\%,$ and Spherical's marginal corporate tax rate is $35\%.$

a$.$ What are the annual CCA deductions associated with this equipment for the first five years?

b$.$ What are the annual CCA tax shields for the first five years?

c$.$ What is the present value of the first five CCA tax shields if the

appropriate discount rate is $10\%$ per year?

d$.$ What is the present value of all the CCA tax shields assuming the equipment is never sold if the appropriate discount rate is $10\%$ per year?

e$.$ How might your answer to part d change if Spherical anticipates that its marginal corporate tax rate will increase substantially over the next five years?