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(15 points) You have just purchased a $5000 computer for use in your small business. Your accountant tells you that you have the options of

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(15 points) You have just purchased a \$5000 computer for use in your small business. Your accountant tells you that you have the options of depreciating it using MACRS 3 year recovery or writing it off this year (equivalent to depreciating the full amount this year). Your taxable income before this write off is $100,000 and you can assume your tax rate is 2.5%h. What are your taxes paid in each case ( 3 years MACRS and writing it off in oae year)? Fill in the table below. Which would you recommend (think about what you know about time value of money)

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