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Depreciation; PV Yarkee Freight provides truck freight services thyoughout the northeast United States. The firm is considering an investment in improwed logstics management requining a

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Depreciation; PV Yarkee Freight provides truck freight services thyoughout the northeast United States. The firm is considering an investment in improwed logstics management requining a mainitrame computer and communications software. Which would cost 5990.000 and have anexpected life of elytt years. For tax purposes, the investment will he depreciated using the straight-hine method, with no saivage value. The company's cost of capital and tax rates are 8 and 30 percent, respectively. a. Compute the present walue of the depreciation cax benefit. Note: Round your final answer to the nearest whole dollor. b. Assume instesd that Yankee Freight uses the double-decl ning balance method of depreciation for taxpurposes witha fwe-year life. Compute the present value of the depreciation tax benefit. Notez Round your final answer to the nearest whole dollar

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