Grove Media plans to acquire production equipment for $$832,500$ that will be depreciated for tax purposes as follows: year $1.$

$$326,500$; year $2,$$$186,500$; and in each of years $3$ through $5,$$$106,500$ per year. A $10$ percent discount rate is appropriate for this

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

Requlred:

o$.$ 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 $($ $$166,500$ per year$).$

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

Required A$.$

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