A-13 Present Value of Cash Flows Rush Corporation plans to acquire production equipment for $627,500 that will be depreciated for tax purposes as follows: year 1, $125.500 ear 2, $215,500; and in each of years 3 through 5, $95,500 per year. A 6 percent discount rate is appropriate for this asset, and the company's ax rate is 40 percent Use uired: a. Compute the present value of the tax shield resulting from depreciation. (Round PV factor to 3 decimal places and other intermediate calculations to nearest whole number.) b. Compute the present value of the tax shield from depreciation assuming straight-ine depreciation ($125,500 per year) (Round PV factor to 3 decimal places and other intermediate calculations to nearest whole number.) References Worksheet