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. In 2004, Sun Energy is purchasing excavation equipment for oil sands extraction. It costs...

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Accounting

. In 2004, Sun Energy is purchasing excavation equipment for oil sands extraction. It costs $4,500,000, and belongs to CCA class 38 with a CCA rate of 30%. The annual savings will be $1,500,000/yr for 7 years. After 7 years, the equipment can be sold for $500,000. Their after-tax MARR is 25%. They are a profitable company that pays 30% corporate tax rate. The equipment is the only item in this class. What is the PW of this equipment?

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