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Energy Corp. is considering the purchase of eight new two-megawatt wind turbines. The cost of...

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Energy Corp. is considering the purchase of eight new two-megawatt wind turbines. The cost of each turbine is $4.25 mln plus an additional $0.75 mln for installation. The turbines have a CCA rate of 5%. Energy Corp. anticipates that the new turbines will last for 15 years at which time they'll be able to sell the turbines for $1.25 mln each. Energy Corp.'s WACC is 8%, its average tax rate is 20% and its marginal tax rate is 35%. The value of the depreciation tax shield in year 2 is mln

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