A Textile Company Invests $12 Million in an Open-End Spinning

A textile company invests $12 million in an open-end spinning machine.The machine belongs to asset class 43 and has a capital cost allowance (CCA) rate of 30%.If the company sold it immediately after the end of year 3 for $8 million,what would be the overall present value of the CCA tax shields from this asset,given a tax rate of 40%,and a cost of capital of 12%?

A) $912,310
B) $1,076,346
C) $1,617,972
D) $2,432,211
E) $3,244,898