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What is the cca of this project in the second year

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Question - ABC company plans to introduce a newline of basketball shoes. Here are the detailed projections: sales per year = 25,000 units @ $120 per unit; variable costs = $60 per unit; fixed costs = $225,000 per year; initial investment = $2,000,000; interest expense = $10,000 per year; project life = 10 years. CCA rate is 30%, Tax rate is 34%, and discount rate is 12%. What is the CCA of this project in the second year?

Reference no: EM133091036

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