5. (Depreciation) You are considering the following investment: B C D E F G H | 2 7 3,000 3,000 3,000 2,500 2,500 2,500 2,500 0 1 3 4 5 6 3 Year 4 Earnings before depreciation and taxes 5 Depreciation 6 Earnings before taxes 7 Tax (34%) 8 Net operating profit after tax 9 Capital investment (no salvage value) 10 Add back depreciation 11 Free cash flow 12 13 Discount rate 14 NPV -10,500 0 11% a. Assuming that the investment can be depreciated using 7-year straight-line depreciation with no salvage value, calculate the project NPV. b. What will be the company's gain in present value if it uses a 7-year modified accelerated depreciation (MACRS) schedule, given below