Scotia Manufacturing Limited is a Nova Scotia based manufacturing company consideringacquiring new machinery worth $66 275. Scotia Manufacturing may purchase the equipment fromtheir supplier or lease it from Atlantic Leasing. The machinery's estimated salvage value after 6 years is estimated at $7 000. Scotia Manufacturing's tax rate is 40%, before-tax borrowing rate 12%, and the CCA rate is 20%. Keeping in mind that Scotia Manufacturing is eligible for the federal Investment Tax Credit (ITC), what is the present value of the company's cost of purchasing the equipment? Round your final answer to the nearest dollar.
A) $35 739
B) $37 515
C) $39 734
D) $32 866

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The Answer of Scotia Manufacturing Limited is a Nova Scotia based manufacturing company consideringacquiring new machinery worth $66 275. Scotia Manufacturing may purchase the equipment fromtheir supplier or lease it from Atlantic Leasing. The machinery's estimated salvage value after 6 years is estimated at $7 000. Scotia Manufacturing's tax rate is 40%, before-tax borrowing rate 12%, and the CCA rate is 20%. Keeping in mind that Scotia Manufacturing is eligible for the federal Investment Tax Credit (ITC), what is the present value of the company's cost of purchasing the equipment? Round your final answer to the nearest dollar.
A) $35 739
B) $37 515
C) $39 734
D) $32 866

Scotia Manufacturing Limited Is a Nova Scotia Based Manufacturing Company