Spherical Manufacturing recently spent $18 million to purchase some equipment used in the manufacture of disk drives. This equipment has a CCA rate of 25% and Spherical's marginal corporate tax rate is 33%.

a. What are the annual CCA deductions associated with this equipment for the first five years? (round to the nearest dollar)

b. What are the annual CCA tax shields for the first five years? (round to the nearest dollar)

c. What is the present value of the first five CCA tax shields if the appropriate discount rate is 10% per year? (round to 2 decimal places)

d. What is the present value of all the CCA tax shields assuming the equipment is never sold and the appropriate discount rate is

10% per year? (round to 2 decimal places)

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?

PLEASE PUT ANSWERS NOT JUST EXPLANATION, THANK YOU