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b. Suppose that the government allows companies to use double-declining-balance depreciation with the option to switch at any point to straight line. Now what is

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b. Suppose that the government allows companies to use double-declining-balance depreciation with the option to switch at any point to straight line. Now what is the present value of the depreciation tax shields? (Enter your answers in millions rounded to decimal place.) Year Year 10 Total $ 120 Double decline Schedule Start of Yeart Book Vio Depreciation Tox Shield PV (Tax Steeds 10% Year 1 Year 2 Year 3 Year 4 Years Year Year 7 Year S 1201 90s Us os 2 s 31 5245 1975 155 12s 10 s O $ os 015 05s 04s 03s 03 os ws 04 Os 025 021 011 011 os 20

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