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A machine is purchased for $500,000 and is used through the end of Year 2....

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A machine is purchased for $500,000 and is used through the end of Year 2. The machine falls under asset class 43 with a capital cost allowance (CCA) rate of 30%. At the end of Year 2, the machine is sold for $75,000. What is the present value of the lost CCA tax shields if the firm's marginal tax rate is 40% and its cost of capital is 5%? O A. $37,050 OB. $25,714 C. $15,180 D. $23,324 O E. $37,950

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