Depreciation Tax Shields Lee & Company has purchased equipment for $200,000. After it is fully depreciated, the equipment will have no salvage value. Lincoln may select either of the following depreciation schedules for tax purposes: Option 1 Option 2 Year Depreciation Depreciation 1 $40,000 $20,000 2 64,000 40,000 3 38,400 40,000 M 23,040 40,000 5 23,040 6 11.520 40,000 20,000 Assuming a 40% tax rate and a 12% desired annual return, compute the total present value of the tax savings provided by these alternative depreciation tax shields. Round answers to the nearest whole number. Use rounded answers to calculate total. Option 1 depreciation: Year Tax Savings (N) (FV) Present Value 1 S 0 S 0 2 0 0 3 0 0 4 0 0 5 0 0 6 0 0 S 0 Option 2 depreciation: Year Tax Savings (N) (FV) Present Value 1 S 0 S 0 23456 2 0 0 0 0 0 0 0 0 0 0 S 0 Which depreciation schedule would be more attractive to Lincoln?