Tamim Products is planning to invest in an equipment to implement a cost$-$cutting proposal. The pre$-$tax cost reduction is expected to equal $$8,500$ for each of the five years of the project's life. The equipment has an initial cost of $$28,000$ and belongs to a $25\%$ CCA class. The company is in $30\%$ tax bracket, the project$$s discount rate is $12\%,$ and its salvage value is zero. The equipment will be sold to another company at the end of year $5$ for $$4,500.$ What is the p Calculations:

Annual CCA:

CCA Rate $=1-(1-\frac{\text{C}\text{C}\text{A}\text{C}\text{l}\text{a}\text{s}\text{s}}{100}{)}^{0\mathrm{.}5}$

CCA Rate $=1-(1-\frac{25}{100}{)}^{0\mathrm{.}5}$

CCA Rate $=0\mathrm{.}0625($or $6\mathrm{.}25\%)$roject$$s profitability index $($PI$)?$

the CCA rate math is incorrect