Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $64,000. The equipment falls into the five-year category for MACRS depreciation and can currently be sold for $27,800. A new piece of equipment will cost $154 000. It also falls into the five-year category for MACRS depreciation. Assume the new equipment would provide the following stream of added cost savings for the next six years. Use Table 12-12. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods Year 1 2 3 4 5 6 Cash Savings $ 65,000 57,00 55,000 53,000 50,000 39,000 The firm's tax rate is 25 percent and the cost of capital is 8 percent. f. Determine the depreciation schedule for the new equipment (Round the depreciation base and annual depreciation answers to the nearest whole dollar. Round the percentage depreciation factors to 3 decimal places.) Year Depreciation Base Percentage Depreciation Annual Depreciation 1 2 3 4 5 5 6 $ g. Determine the depreciation schedule for the remaining years of the old equipment. (Round the deprecia depreciation answers to the nearest whole dollar. Round the percentage depreciation factors to 3 decim Year Depreciation Base Percentage Depreciation Annual Depreciation 2 3 4 h. Determine the incremental depreciation between the old and new equipment and the related tax shield benefits. (Enter the tax rate as a decimal rounded to 2 decimal places. Round all other answers to the nearest whole dollar.) Year Depreciation on New Equipment Depreciation on Old Equipment Incremental Depreciation Tax Rate Tax Shield Benefits 1 2 3 4 5 6 i. Compute the aftertax benefits of the cost savings. (Enter the aftertax factor as a decimal rounded to 2 decimal places. Round all other answers to the nearest whole dollar.) Year (1 -- Tax Rate) Aftertax Savings 1 2 3 4 5 Savings $ 65,000 57,000 55,000 53,000 50,000 39,000 6