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Albernie Ltd$.$ purchased a CCA Class $8($CCA rate of $20\%)$ item of equipment for $$98$ was the only item in the Class $8$ capital cost allowance pool. The equipment is expected to generate savings in the amount of $$40,000$ per year. The company uses straight$-$line depreciation and estimates a $3-$year useful life with $$20,000$ salvage value for the new equipment. The tax rate is $30\%,$ and Albernie has a required rate of return of $10\mathrm{.}0\%$

Required: $($round your answer to the nearest whole dollar$)$

What is the maximum capital cost allowance that Albernie Ltd$.$ can claim in year $2$ if the maximum was claimed in year $1?$ Answer: $

What is present value of the after$-$tax savings that Albernie Ltd$.$ expects during the useful life of the equipment?

Answer: $

What is present value of the salvage value

ti$.$at Albernie Ltd$.$ is expecting from the equipment?

Answer: $

What is the net present value of the Albernie Ltd$.$ investment in equipment if the present value of the tax shield that Albernie Ltd$.$ can expect from the equipment is $$15,704?$

Answer