Alternative depreciation methods; NPV

Kansas Salt Co$.$ is considering an investment in computer$-$based production technology as part of a business reengineering process. The necessary equipment will cost $$18,000,000,$ have a life of eight years, and generate annual net before$-$tax cash flows of $$3,100,000$ from operations. Cost of installation and training is considered nominal. The equipment will have no salvage value at the end of its eight$-$year estimated life. The company's tax rate and cost of capital are, respectively, $30$ percent and $5$ percent.

a$.1.$ If Kansas Salt Co$.$ uses straight$-$line depreciation for tax purposes, calculate the net present value of the investment.

Note: Round your final answer to the nearest whole dollar.

$2.$ Should the company make this investment based on the results of part $(1)?$

b$.$ Assume that the tax law allows the company to take accelerated annual depreciation on this asset in the following manner.

Years $1-2,23\%$ of cost

Years $3-8,9\%$ of cost

What is the net present value of the equipment?

Note: Round your final answer to the nearest whole dollar.

$$

$2.$ Should the company make this investment based on the results of part $(1)?$

c$.$ Recompute $($a$)$ assuming the tax rate is increased to $40$ percent.

What is the net present value of the equipment?

Note: Round your final answer to the nearest whole dollar.

$$

$2.$ Should the company make this investment based on the results of part $(1)?$

d$.$ Recompute $($b$)$ assuming the tax rate is increased to $40$ percent.

What is the net present value of the equipment?

Note: Round your final answer to the nearest whole dollar.