Maple Syrup Food Is Considering a Six-Year Expansion Project That

Multiple Choice

Maple Syrup Food is considering a six-year expansion project that requires an initial investment of $350,000 for the purchase of a new capital asset with a CCA rate of 20%.The costs to install the asset are $25,000.The projected annual sales revenue and costs are $200,000 and $90,000 per year, respectively.The appropriate discount rate is 10%.The firm's marginal tax rate is 40%.What is the fourth year CCA expense assuming accelerated investment incentive is applicable for CCA in year 1?

A) $33,600
B) $38,400
C) $40,320
D) $43,200