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Answer is complete but not entirely correct. ***PLEASE HELP WITH PRESENT VALUES, EVERYTHING ELSE IS CORRECT*** *** A company purchases an asset that costs $10,000.

Answer is complete but not entirely correct. ***PLEASE HELP WITH PRESENT VALUES, EVERYTHING ELSE IS CORRECT***

***

A company purchases an asset that costs $10,000. This asset qualifies as 3-year property under MACRS. The company uses an after-tax discount rate of 12% and faces a 40% income tax rate. (a) Use the appropriate present value factors found in Appendix C, Table 1, to determine the present value of the depreciation deductions for this firm over the specified 4-year period. Refer to Exhibit 12.4. (Round "MACRS %" to 2 decimal places (i.e, 0.1234 = 12.34%), "PV factor" to 3 decimal places. Round your answers to the nearest whole dollar amount.)

Answer is complete but not entirely correct.***PLEASE HELP WITH PRESENT VALUES, EVERYTHING ELSE IS CORRECT***

** 2982, 3543, 1054, and 471 are all incorrect for present values. please help and ill give thumbs up (:

Year Depreciation Deduction Tax Savings Present Values
1 $3,333selected answer correct $1,333selected answer correct $2,982selected answer incorrect
2 4,445selected answer correct 1,778selected answer correct 3,543selected answer incorrect
3 1,481selected answer correct 592selected answer correct 1,054selected answer incorrect
4 741selected answer correct 296selected answer correct 471selected answer incorrect
$10,000 $3,999

$8,050

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