You are a manager of a company that just spent $80,000 to purchase a piece of equipment that is expected to function for five years. If you can borrow money at 5%, what is the PDV of the depreciation allowance under the following circumstances?

a. You can expense the investment.

b. You depreciate using straight-line depreciation methods.

c. You depreciate over four years using accelerated straight-line depreciation methods.

d. You depreciate using an augmented accelerated method in which half of the asset value is depreciated immediately and the other half is straight-line depreciated over the remaining three years.