The company requires an initial investment of $100,000 to purchase machinery. The machinery will last 10 years. This machine will provide savings of $30,000 after taxes for every year. The salvage value of the machinery is 10% of the initial investment. Use a discount rate of 6%, CCA rate of 15% and Tax rate of 40%.

1. Calculate the CCA and tax shield for 1st year.

2. Calculate the CCA and tax shield for 2nd year.

3. Calculate the PV of the tax shields for the entire project.

4. Calculate the NPV of the entire project.