The CCA tax shield for the Sisyphean Corporation's project in the first year is closest to:

Question

Quizplus · Accepted Answer

The CCA (Capital Cost Allowance) tax shield can be calculated using the formula:

CCA Tax Shield = CCA Rate x Capital Cost

Where CCA Rate is the percentage rate at which a company can claim depreciation for tax purposes, and Capital Cost is the total cost of the asset.

In the first year of the project, assuming the Sisyphean Corporation has a CCA rate of 15%, the CCA tax shield can be calculated as follows:

CCA Tax Shield = 15% x $10,500 = $1,575

Therefore, the closest answer is B) $1575.

The CCA Tax Shield for the Sisyphean Corporation's Project in the First