A manufacturing company incurred an immediate capital expenditure of $$200000$ in anticipation

of annual operating profits of $$80000$ over a six$-$year period. It was estimated that the salvage

value of the equipment purchased would be negligible. Given a corporate income tax rate of $45$

percent and a minimum acceptable after$-$tax return on investment of $12$ percent, compare the total

tax payments and net present values obtained from depreciating the investment by the decliningbalance method at rates of $30$ percent and $40$ percent per year. Discuss the results.