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\[PV(CCA\ Tax\ Shield)\] \[ = {(C_0)(d)(T) \over (d+k)} \times {1+0.5k \over (1+k)} - {(SV_n)(d)(T) \over (d+k)} \times {1 \over (1+k)^n} \]

\[ = {(500000.00) (0.20) (0.35) \over (0.20+ 0.12)} \times {1+(0.5)(0.12)\over (1+0.12)} - {(100000.00) (0.20) (0.35) \over ( 0.20+ 0.12)} \times {1 \over (1+0.12)^5} \]

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