You are considering a project with the following details.

• The purchase of $700,000 in new equipment.
• The equipment belongs in a 20% CCA class.
• After 10 years the company can sell the equipment for 10% of its original cost.
• You wants a minimal 15% rate of return on this project.
• The tax rate is 35%.
• Annual sales from this project are estimated at $600,000.
• Net working capital equal to 20% of sales will be required to support the project.
• What is the present value of the CCA Tax Shield for this project?