You purchase a machine for $200,000 which belongs in a 30% CCA class. What is the present value of the CCA tax shield on the machine if it is sold at the end of the fifth year for $50,000, your tax rate is 35%, and the appropriate discount rate is 10%?

Select one:

a.

$41,964

b.

$46,202

c.

$66,623

d.

$86,994

e.

$52,215