A company purchases an asset that costs $$25,000.$ This asset qualifies as three$-$year property under MACRS. The company uses an after$-$tax discount rate of $9\%$ and faces a $35\%$ income tax rate. $($Use Table $1,$ Table $2$ and Exhibit $12\mathrm{.}4.)$

$1.$ Demonstrate that the PV of the depreciation deductions, when the income tax rate is $35\%,$ is $$7,409.$

$2.$ Given an after$-$tax discount rate of $9\%,$ what tax rate would be needed in order for the PV of the depreciation deductions to equal $$8,750?$ Use the Goal Seek function of Excel.