https://www.math lom/ Student playerHomework.aspx?homeworkld-492328069&questionid-5&fushed-fal MGMT 326-007- Financial Management (Fall 2018) Homework: Chapter 9 Homework 2018 Save Score: 0 of 1 pt | 170121 (12 complete),/> V Score: 4694%, 9860. P 9-27 (similar to) Question Help | * Markov Manufacturing recently spent $19 9 million to purchase some equipment used in the manufacture of disk drives. The firm expects that this equipment will have a useful life of five years, and its marginal co rate is 40% The cormpany plans to use straight line depreciation a. What is the annual depreciation expense associated with this equipment? b. What is the annual depreciation tax shield? c. Rather than straight-ine depreciation, suppose Markov will use the MACRS depreciation method for the five-year life of the property. Calculate the depreciation tax shield each year for this accelerated depreciation schedule d. If Markov tax rate is expected to remain constant, which schedule should it choose? Why? e. How might your answer to part (d) change if Markov anticipates that its marginal corporate tax rate will increase substantially over the next five years? Note: Assume that the equipment is put into use in year 1 porate tax t under this has a choice between straight -ine and MACRS depreciation schedules, and its marginal corporate c. Rather than straight-line depreciation, the five-year life of the property. accelerated depreciation schedule. suppose Markov will use the MACRS depreciation method for Calculate the depreciation tax shield each year for this equipment under this The depreciation tax shield for year 1 is $ 1.592 millin. (Round to three decimal places) The depreciation tax shield for year 2isSmilion Round to three decimal places Enter your answer in the answer box and then click Check Answer. 6 clear Al emaining O Type here to search