Gluon INc. is considering the purchase of a new high pressure glueball. It can purchase

the glueball for $120000 and sell its old low-pressure gluebll. Which is fully depreciated,

for $20,000. The new equipment ahas a 10-year useful life and will save $28000 a year in

expenses. The opportunity cost of capital is 12% and the firms tax rate is 40%. What is the

equivalent annual saving from the purchase if Gluon uses straight line depreciation

For each step in calculating please state why/ the reason for easy comprehension on my part