Answer the following please while showing your steps:

Depreciation Tax Shields Mendota Company has purchased equipment for $100,000. After it is fully depreciated, the equipment will have no salvage value. Mendota may select either of the following depreciation schedules for tax purposes: Option 1 Option 2 Year Depreciation Depreciation $10,000 20,000 32,000 19,200 11,520 11,520 5,760 20,000 20,000 10,000 Assuming a 40% tax rate and a 12% desired annual return, compute the total present value of the tax savings provided by these alternative depreciation tax shields. Round answers to the nearest whole number. Use rounded answers to calculate total. Option 1 depreciation: Year (N) Tax Savings (FV) Present Value Option 2 depreciation: Year (N) Tax Savings (FV) Present Value Which depreciation schedule would be more attractive to Mendota