Depreciation Tax Shields Lincoln Company has purchased equipment for $500,000. 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 $50,000 100,000 100,000 57,600100,000 100,000 50,000 $100,000 160,000 96,000 57.600 28,800 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 0 O 20