Walter Inc is purchasing a new equipment at a cost of $675,000. The equipment is expected to last for five years and will have no salvage value. The new equipment will save Walter $120,000 (before taxes) in operating expenses annually. If the company's required rate of return is 12% and the CCA rate on equipment is 30%, determine the PVCCATS of the purchase. Assume a tax rate of 35%. Select one: O a. $159,710 O b. $237,710 0 с. $81,710 O d. $281,170 0 e. $199,710
