A company purchases an asset that costs $$46,000.$ This asset qualifies as three$-$year property under MACRS. The company uses an

after$-$tax discount rate of $12\%$ and faces a $31\%$ income tax rate. $($Use Table $1,$ Table $2$ and Exhibit $12\mathrm{.}4.)$

Demonstrate that the PV of the depreciation deductions, when the income tax rate is $31\%,$ is $$11,472.$

Given an after$-$tax discount rate of $12\%,$ what tax rate would be needed in order for the PV of the depreciation deductions to equal

$$14,260?$ Use the Goal Seek function of Excel.

Complete this question by entering your answers in the tabs below.

Required $2$

Demonstrate that the PV of the depreciation deductions, when the income tax rate is $31\%,$ is $$11,472.($Do not round

intermediate calculations. Round all dollar amounts to $2$ decimal places.$)$