Depreciation Tax Shields Lincoln Company has purchased equipment for $400,000. After it is fully depreciated, the equipment will have no salvage value. Lincoln may select elther of the following depreciation schedules for tax purposes Option 1 Option 2 Year Depreciation Depree $80,000 128,000 76,800 46,080 46,080 23,040 $40,000 80,000 80,000 80,000 80,000 40,000 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 (N) Tax Savings (FV) Present Value