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1) Best Darn Glasses (BDR) is thinking of investing in asandblasting machine for its glassware. It provides you with thefollowing information: The initial investment for this projectwould be $235,000 in specialized machinery. According to CRA, thismachine falls into a CCA class of 8%. There is the possibility ofsalvage of $6,000, although it’s not for sure. The risk-adjustedcost of capital is 12% and the company’s tax rate is 25%. Calculatethe CCA tax shield under both scenarios – with and withoutsalvage.2) Using the information from above, calculate the project’s NPVif the following information were also provided to you: Cost ofmaintenance of the sandblasting machine is $35,000 per year, andthe machine will only last 10 years. The salvage value, at thatpoint, will be zero. The company’s revenues will be $170,000 peryear with direct production costs of $27,000.