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A company purchases an asset that costs $ 1 0 , 0 0 0 . This asset qualifies as 3 - year property under MACRS.

A company purchases an asset that costs $10,000. This asset qualifies as 3-year property under MACRS. The company uses an after-tax discount rate of 15% and faces a 40% income tax rate. (a) Use the appropriate present value factors found in Appendix C. Table 1, to determine the present value of the depreciation deductions for this firm over the specified four-year period. Refer to Exhibit 12.4.(Round depreciation expense to 2 decimal places.)
\table[[Year,\table[[Depreciation],[Deduction]],\table[[Tax],[Savings]],\table[[Present],[Values]]],[1,,,],[2,,,],[3,,,],[4,,,],[,0.00,0.00,0.00]]
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