(a) Year 1 2 3 4 5 6 7 8 9 10 Opening WDV Depreciation Closing WDV Tax Shield PV of Tax Shield 240.00 72.00 168.00 18.00 16.82 168.00 50.40 117.60 12.60 11.01 117.60 35.28 82.32 8.82 7.20 82.32 24.70 57.62 6.17 4.71 57.62 17.29 40.34 4.32 3.08 40.34 12.10 28.24 3.03 2.02 28.24 8.47 19.77 2.12 1.32 19.77 5.93 13.84 1.48 0.86 13.84 4.15 9.68 1.04 0.56 9.68 9.68 2.42 1.23 48.81 Present value of depreciation tax shield is 48.81 (b) Year 1 2 3 4 5 6 7 8 9 10 Opening WDV Depreciation Closing WDV Tax Shield PV of Tax Shield 240.00 48.00 192.00 12.00 11.21 192.00 38.40 153.60 9.60 8.39 153.60 30.72 122.88 7.68 6.27 122.88 24.58 98.30 6.14 4.69 98.30 19.66 78.64 4.92 3.50 78.64 15.73 62.91 3.93 2.62 62.91 12.58 50.33 3.15 1.96 50.33 10.07 40.27 2.52 1.46 40.27 8.05 32.21 2.01 1.10 32.21 32.21 8.05 4.09 45.29 Present value of depreciation tax shield is 45.29 Change in PV Change in PV = = 48.81 - 45.29 3.52