depreciation.

a$.$ What is the annual depreciation expense associated with this equipment?

b$.$ What is the annual depreciation tax shield?

d$.$ If Markov has a choice between straight$-$line and MACRS depreciation schedules, and its marginal corporate tax rate is expected to remain constant, which schedule should it choose? Why?

e$.$ How might your answer to part $($d$)$ change if Markov anticipates that its marginal corporate tax rate will increase substantially over the next five years?

Note: Assume that the equipment is put into use in year $1.$

a$.$ What is the annual depreciation expense associated with this equipment?

The annual depreciation expense is $ $$ I million. $($Round to three decimal places.$)$

b$.$ What is the annual depreciation tax shield?

The annual depreciation tax shield is $$\mathrm{.}642$ million. $($Round to three decimal places.$)$

The depreciation tax shield for year $1$ is $ $$ million. $($Round to three decimal places$\_)$