Calculate the present value of depreciation tax savings on a depreciable asset with a purchase price of $5 million and zero salvage value, assuming a 10 percent discount rate, a 34 percent tax rate, and the following type of depreciation:

a. The asset is depreciated over a 3-year life according to Table.
b. The asset is depreciated over a 7-year life according to Table.
c. The asset is depreciated over a 20-year life according to Table.

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Tax Depreclation Schedules by Asset Class Year(s) 10-Year 10.00 18.00 14.40 11.52 9.22 7.37 6.55 6.55 6.55 6.55 3.29 3- Year 5-Year 20.00 32.00 19.20 11.52 11.52 5.76 7-Year 15-Year 5.00 9.50 8.55 7.70 6.93 6.23 5.90 5.90 5.90 5.90 5.90 5.90 5.90 5.90 5.90 2.99 20-Year 3.75 7.22 6.68 6.18 5.71 5.28 4.89 4.52 4.46 4.46 4.46 4.46 4.46 4.46 4.46 4.46 4.46 2.25 33.33 44.45 14.81 14.29 24.49 17.49 12.49 8.93 8.93 8.93 4.45 7.41 8 12 13 17-20 21