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Grove Media plans to acquire production equipment for $840,000 that will be depreciated for tax purposes as follows: year 1, $328,000; year 2, $188,000;

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Grove Media plans to acquire production equipment for $840,000 that will be depreciated for tax purposes as follows: year 1, $328,000; year 2, $188,000; and in each of years 3 through 5, $108,000 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.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 ($168,000 per year). Complete this question by entering your answers in the tabs below. Required A Required B 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

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