Calculate the OCF and CCA Tax Shield Given the Following

Multiple Choice

Calculate the OCF and CCA tax shield given the following information: Sales $900,000; Costs $575,000; Depreciation $200,000. Tax rate is 34%.

A) OCF = $282,500; CCA tax shield = $68,000
B) OCF = $287,500; CCA tax shield = $70,000
C) OCF = $292,500; CCA tax shield = $72,000
D) OCF = $297,500; CCA tax shield = $74,000
E) OCF = $302,500; CCA tax shield = $76,000