You purchase a machine for $210,000 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 sixth year for $24,000, your tax rate is 35%, and the appropriate discount rate is 10%?

Select one:

a. $66,623

b. $49,063

c. $40,143

d. $52,215

e. $86,994

b. II and IV only

c. II only

d. IV only

e. III only