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C and D please Your firm is considering a project that would require purchasing $7.6 million worth of new equipment. Determine the present value of

image text in transcribedC and D please

Your firm is considering a project that would require purchasing $7.6 million worth of new equipment. Determine the present value of the depreciation tax shield associated with this equipment if the firm's tax rate is 37%, the appropriate cost of capital is 10%, and the equipment can be depreciated: a. Straight-line over a ten-year period, with the first deduction starting in one year. b. Straight-line over a five-year period, with the first deduction starting in one year. c. Using MACRS depreciation with a five-year recovery period and starting immediately d. Fully as an immediate deduction a. Straight-line over a ten-year period, with the first deduction starting in one year. The present value of the depreciation tax shield associated with this equipment is $ 1.73 million. (Round the final answer to three decimal places. Round all intermediate values to four decimal places as needed.) b. Straight-line over a five-year period, with the first deduction starting in one year. The present value of the depreciation tax shield associated with this equipment is $ 2.13 million. (Round the final answer to three decimal places. Round all intermediate values to four decimal places as needed.) c. Using MACRS depreciation with a five-year recovery period and starting immediately The present value of the depreciation tax shield associated with this equipment is $ million. (Round the final answer to three decimal places. Round all intermediate values to four decimal places as needed.)

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