1.)

a. Assume you invest in a machine worth $171,391. The machine is classified by the IRS as an asset with a 4 year life, with depreciation percentages for each year, from 1 to 4, as follows: 33%, 45%, 15%, 7%. Which value for depreciation should you use in the 3rd year of your project?

b. Assume your company made $300,351 in operating income this year. Total depreciation was $39,596, and the firm's tax rate is 22%. How much tax do you expect to have to pay?