Follett Enterprises has purchased three greenhouses over the past five years, but today it sold them all for $500,000. Five years ago, Follett purchased the first greenhouse for $300,000, two years later it purchased the second for $250,000, and last year it purchased one for $400,000. Follett Enterprises has a marginal tax rate of 30 percent. CCA on greenhouses is 10 percent. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)

a and b. Calculate the tax shields and any taxes payable to Follett on an annual basis over the five-year period resulting from these investments.

Year	CCA	Tax shields
1	$	$
2
3
4
5

c-1. Calculate the present value of the tax shields and any taxes payable under the assumptions of part a and b.

Present value $

c-2. Calculate the present value of the CCA tax shields with Formula 121.

Present value $

c-3. Difference between formula and year by year calculation. Folletts cost of capital is 14 percent.

Difference $