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Your firm can purchase $60,000 machine that falls into a 20% CCA class and would last for seven years. After seven years, the machine could

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Your firm can purchase $60,000 machine that falls into a 20% CCA class and would last for seven years. After seven years, the machine could be sold for an estimated $5,000. The firm has a 25% corporate tax rate and a 9% cost of capital for machines of this type. What is the PV of the CCA tax shield, including the impact of the expected salvage value? $7,767 $8,057 $9.446 $6,088 $9,019

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