For these questions, please use the 5-year MACRS schedule found in the table at the bottom of this window. Let's say you spend $14,000,000 on a depreciable asset that uses the 5-year MACRS schedule. What will the book value of this assot be at the end of year 3? If you sell this asset for $10,000,000 at the end of year 3, what is the TOTAL after-tax salvage value of the sale, assuming a 40% tax rate? If you were the CFO of a company investing in this asset, in general would you prefer a MACRS deprecation schedule or a straight line depreciation schedule, and why? A. MACRS, since it will result in higher operating income in the early years of a project B. Straight-line, since it will result in higher tax-deductible depreciation expenses in the later years of a project C. Straight-line, since the calculations are more straightforward D. MACRS, since it will result in higher net income figures in the early years of a project 3. Veer Year 15-Year 5.00 20 Year 3.750 1 33.33% 20.00% 14.29% 10.00% Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year 1 33.33% 20.00% 14.29% 10.00% 5.00% 3.750% N 44.45% 32.00% 24.49% 18.00% 9.50% 7.219% 3 3 14.81% 19.20% 17.49% 14.40% 8.55% 6.677% 4 7.41% 11.52% 12.49% 11.52% 7.70% 6.177% 5 11.52% 8.93% 9.22% 6.93% 5.713% 6 5.76% 8.93% 7.37% 6.23% 5.285% 7 8.93% 6.55% 5.90% 4.888% 8 4.45% 6.55% 5.90% 4.522% 9 6.56% 5.91% 4.462% 10 6.55% 5.90% 4.461% 11 3.28% 5.91% 4.462% 12 5.90% 4.461% 13 5.91% 4.462% 14 5.90% 4.461% 15 5.91% 4.462% 16 2.95% 4.461% 17 4.462% Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year 1 33.33% 20.00% 14.29% 10.00% 5.00% 3.750% N 44.45% 32.00% 24.49% 18.00% 9.50% 7.219% 3 14.81% 19.20% 17.49% 14.40% 8.55% 6.677% 4 7.41% 11.52% 12.49% 11.52% 7.70% 6.177% 5 11.52% 8.93% 9.22% 6.93% 5.713% 6 5.76% 8.93% 7.37% 6.23% 5.285% 7 8.93% 6.55% 5.90% 4.888% 8 4.45% 6.55% 5.90% 4.522% 9 6.56% 5.91% 4.462% 10 6.55% 5.90% 4.461% 11 3.28% 5.91% 4.462% 12 5.90% 4.461% 13 5.91% 4.462% 14 5.90% 4.461% 15 5.91% 4.462% 16 2.95% 4.461% 17 4.462%