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The Sisyphean Corporation is considering investing in a new cane manufacturing machine that has an...

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Finance

The Sisyphean Corporation is considering investing in a new cane manufacturing machine that has an estimated life of three years. The cost of the machine is $30,000 and the machine falls under asset class 43 and has a capital cost allowance (CCA) rate of 30%. The firm is in the 35% tax bracket and has a cost of capital of 10%. The CCA tax shield for the Sisyphean Corporation's project in the first year is closest to:

A. $8,000

B. $1,575

C. $2,800

D. $5,200

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