Brief Exercise 12-26 (Algo) A company purchases an asset that costs... [LO 12-5] A company purchases an asset that costs $22,000. This asset qualifies as three-year property under MACRS. The company uses an after-tax discount rate of 10% and faces a 35% income tax rate. (Use Table 1, Table 2 and Exhibit 12.4.) 1. Demonstrate that the PV of the depreciation deductions, when the income tax rate is 35%, is $6,406. 2. Given an after-tax discount rate of 10%, what tax rate would be needed in order for the PV of the depreciation deductions to equal $7,700? Use the Goal Seek function of Excel. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Demonstrate that the PV of the depreciation deductions, when the income tax rate is 35%, is $6,406. (Do not round intermediate calculations. Round all dollar amounts to 2 decimal places.) Year MACRS % Depreciation Deduction Tax Savings PV Factor Present Values 1 % 2 % 3 % 4 % % < Required 1 Required 2 >