1%. The company plans to use straight-line depreciation. What is the annual depreciation expense associated with this equipment? What is the annual depreciation tax shield? epreciation schedule. . If Markov has a choice between straight-line and MACRS depreciation schedules, and its marginal corporate tax rate is expected to remain constant, which schedule should it choose? Why? How might your answer to part (d) change if Markov anticipates that its marginal corporate tax rate will increase substantially over the next five years? lote: Assume that the equipment is put into use in year 1