Suppose a Project Requires a Capital Investment of $300,000

Suppose a project requires a capital investment of $300,000.The project will last for six years,at which time the asset will be sold for $90,000.The asset will be depreciated on a declining balance basis at a CCA rate of 20 percent.The firm's marginal tax rate is 40 percent.The firm's required rate of return is 8 percent.Assume the asset class remains open after the asset is sold.What is the present value of the CCA tax savings for the project?

A) $63,472.64
B) $65,950.56
C) $66,335.32
D) $66,720.08