1. The law firm has purchased office furnitures for its newly opened office and will be depreciated according to the MACRS with a property class of 10-year. The cash flows of the office furnitures are given in the table below. The company's effective income tax rate is 13% and its after-tax MARR is 9% per year. If the firm only plans to keep the files for 3 years, what would be the after-tax present value (PW) of this investment? EOY BTCF Depreciation Taxable Cash Flow for ATCF Income Income Taxes 0 1 6,700 2 2375 3 3 7,900 8,400 8,125 a) First spend: b) Depreciation amount EOY3: c) Depreciation amount EOY1: d) Book value EOY3: e) Taxable income EOY3: f) Equivalent after-tax present worth of this investment (PW): g) BTCF IRR? 2. We consider changing our depreciation from the MACRS method to the SL method for one of our equipment. The cost basis of the equipment is $75,000, and the expected salvage value is $8,500. The firm will use the equipment for six years and will depreciate it over this period with the SL method. What is the difference in the amount of depreciation that would be claimed in year four (MACRS - SL)