Grove Media plans to acquire production equipment for $$825,000$ that will be depreciated for tax purposes as follows: year $1,$

$$325,000$; year $2,$$$185,000$; and in each of years $3$ through $5,$$$105,000$ per year. A $10$ percent discount rate is appropriate for this

asset, and the company's tax rate is $20$ percent. Use Exhibit A$.8$ and Exhibit A$\mathrm{.}9.$

Required:

a$.$ Compute the present value of the tax shield resulting from depreciation.

b$.$ Compute the present value of the tax shield from depreciation assuming straight$-$line depreciation $($ $$165,000$ per year$).$

Complete this question by entering your answers in the tabs below.

Compute the present value of the tax shield resulting from depreciation.

Note: Round PV factor to $3$ decimal places.

Present value of the tax shield