Alternative depreciation methods; NPV

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.

$x$

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

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 $3-89\%$ of cost

What is the net present value of the equipment:

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

: $x$

Should the company make this investment based on the results of part $(1)?$ Yes hat$(**)$

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.

$

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.

Should the company make this investment based on the results of part $(1)$: