A company anticipates a capital cost allowance (CCA) deduction of $70,000 in year 2 of a project.The company's tax rate is 30%,and its discount rate is 14%.What is the approximate present value of the CCA tax shield resulting from this deduction?
A) $16,149.
B) $21,000.
C) $37,704.
D) $49,000.
Correct Answer:
Verified
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