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# It costs $675,000 for a new equipment and is expected to last for five years with no salvage value. During this time the company will use a 30% CCA...

1. It costs $675,000 for a new equipment and is expected to last for five years with no salvage value. During this time the company will use a 30% CCA rate. The new equipment will save $120,000 annually before taxes. If the company's required rate of return is 12%, determine the PVCCATS of the purchase. Assume a tax rate of 35%. **(2 marks)**

A. $159,710 B. $169,710 C. $179,710 D. $189,710 E. $199,710