16. Markov Manufacturing recently spent $19 million to purchase some equipment used in the man- ufacture of disk drives. The firm expects that this equipment will have a useful life of five years, and its marginal corporate tax rate is 38%. The company plans to use straight-line depreciation a. What is the annual depreciation expense associated with this equipment? b. What is the annual depreciation tax shield? c. Rather than straight-line depreciation, suppose Markov will use the MACRS depreciation method for five-year property. Calculate the depreciation tax shield each year for this equip- ment under this accelerated depreciation schedule,. marginal corporate tax rate is expected to remain constant, which should it choose? Why? tax rate will increase substantially over the next five years? d. If Markov has a choice between straight-line and MACRS depreciation schedules, and its e. How might your answer to part (d) change if Markov anticipates that its marginal corporate