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 $11,700,000, have a life of eight years, and generate annual net before-tax cash flows of $2,015,000 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. $ 1,323,374 x 2. Should the company make this investment based on the results of part (1)? No * * 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 1. What is the net present value of the equipment? Note: Round your final answer to the nearest whole dollar. $ 0