A Company Anticipates a Capital Cost Allowance (CCA)deduction of $30,000

question 11

Multiple Choice

A company anticipates a capital cost allowance (CCA) deduction of $30,000 in year 3 of a project.The company's tax rate is 30%,and its discount rate is 12%.What is the approximate present value of the CCA tax shield resulting from this deduction? (Do not round your intermediate calculations and round the final answer to the nearest whole dollar.)

• A) $6,406.
• B) $9,000.
• C) $14,947.
• D) $21,000.

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