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Depreciation Tax Shields Lincoln Company has purchased equipment for $300.000. After is fully deprecated, the coupment will have no salvage value Lincoln may select ether

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Depreciation Tax Shields Lincoln Company has purchased equipment for $300.000. After is fully deprecated, the coupment will have no salvage value Lincoln may select ether of the flowing deprecationstheddies for tax purposes ar Depreciation Depreciation S600 350.000 2 6300 0000 3560 60.000 50.000 5 Assuming a do tax rate and a 12 desired annual return compute the total present value of the tax is provided by these are depreciation tax shields Round answers to the nearest whole number. Use rounded answers to calculate total Option 1 depreciation Wear Ne Tu Bang JFV) Present was 14.0093 21:42 30.005 21 16.415 13.824 1 4 1 5 Option 2 depreciation Year (N) Tas savings Present Value 12.000 10,715 24000 4000 4 24.000 2000 which deprecation schedule would be more attractive to Lincoln Option 2

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