Tupper Corp. is evaluating new equipment that will cost $350,000. The new equipment will provide the company with annual before-tax savings of $110,000 for the next five years. The company can depreciate the asset at a CCA rate of 30%. At the end of Year 5, the equipment can be sold for $10,000. The marginal corporate tax rate is 40% and the required rate of return is 12%. What is the value of this new equipment to the company?

Multiple Choice

• -$98,368.21

• -$11,767.64

• -$13,388.86

• $139,547.02