Why do managers like accelerated depreciation for tax purposes? Consider an investment of £100,000 in an asset with a 10-year economic life. The asset has no salvage value at the end of 10 years. The tax rate is 40 per cent and the required rate of return is 10 per cent. What is the PV of the depreciation tax savings using straight-line (SL) depreciation? Which depreciation method would you choose if you were managing the company – SL or accelerated?