Depreciation Tax Shields Mendota Company has purchased equipment for $550,000. After it is fully depreciated, the equipment will have no salvage value. Mendota may select either of the following depreciation schedules for tax purposes: Option 1 Option 2 Year Depreciation Depreciation 1 $110,000 $55,000 2 176,000 110,000 345 105,600 110,000 63,360 110,000 6 63,360 31,680 110,000 55,000 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.