Use the following data for Questions 7, 8 and 9. Smidt and Vas is an infrastructure investment firm that is currently analyzing a new project which will generate an annual before tax operating cash flow of $500,000. The capex for the project is $4M, the firm has a tax rate of 25% and the CCA depreciation rate for this asset is 30%. Smidt and Vas has a cost of capital of 10%. What is the projects year 3 CCA expense?

A. $714,000

B. $255,000

C. $1,666,000

D. $136,364

What is the projects year 4 CCA tax shield?

		A. $150,000
		B. $2,380,000
		C. $499,800
		D. $124,950

What is the projects year 2 PV of CCA tax shield?

		A. $600,000
		B. $210,744
		C. $3,400,000
		D. $134,110