Consider the investment. The discount rate is 11% and the tax rate is 34%. a. Calculate the project's NPV using straight line depreciation. b. What will the company gain if it uses a 7-year MACRS depreciation? You can find the depreciation schedule in the IRS publication. Discount rate 11% Tax rate 34% Year Investment EBDT Net income (IRS Publication 946 - https://www.irs.gov/pub/irs-pdf/p946.pdf)

Discount rate	11%
Tax rate	34%
	Year	Investment	EBDT	Net income
	0	-10,500
	1		3,000	1,980
	2		3,000	1,980
	3		3,000	1,980
	4		2,500	1,650
	5		2,500	1,650
	6		2,500	1,650
	7		2,500	1,650