38. A company anticipates a depreciation deduction of $20,000 in year 2 of a project. The company's tax rate is 30% and its discount rate is 12%. The present value of the depreciation tax shield resulting from this deduction is closest to: a. $11,158. b. $14,000 c. $6,000. d. $4,782 39. Suppose a machine costs $20,000 now, has an expected life of eight years, and will require a $7,000 overhaul at the end of the third year. If the tax rate is 40%, then the after-tax cost of this overhaul would be: a. $12,000. b. $4,200. c. $8,000. d. $2,800