CCA Tax Shield Calculator

Your CCA tax shield is worth $91,103.16

$P V (C C A T a x S h i e l d)$ $= \frac{(C_{0}) (d) (T)}{(d + k)} \times \frac{1 + 0.5 k}{(1 + k)} - \frac{(S V_{n}) (d) (T)}{(d + k)} \times \frac{1}{(1 + k)^{n}}$

$= \frac{(500000.00) (0.20) (0.35)}{(0.20 + 0.12)} \times \frac{1 + (0.5) (0.12)}{(1 + 0.12)} - \frac{(100000.00) (0.20) (0.35)}{(0.20 + 0.12)} \times \frac{1}{(1 + 0.12)^{5}}$

$= (109375.000 \times 0.946) - (21875.000 \times 0.567)$ $= $ 91, 103.16$