16: You buy a machine for $300,000. Tax rate is 21%. Using the sum-of-years-digits method, and a 7-year depreciation period, what is the depreciation tax break each year? Year Amount depreciated 1 2 3 4 5 6 7 (SOYD) Tax break value (SOYD) Amount depreciated (Straight line) Tax break value (SL) PV of Tax break (SOYD): -> PV of Tax break (Straight line): -> 17: What's the PV of the tax break in question 16? (10% discount rate) 18: What's the PV if you just straight-line depreciated it? (10% discount rate)