Ideal Pots & China just ordered a new kiln for $$380,000.$ Find the present value of the tax shields for the following cases:

$(1)$ depreciate the kiln based on the MACRS $3-$year depreciation, $(2)$ depreciate straight$-$line over four years, and $(3)$ double$-$declining depreciation with switch to straight$-$line over four years.

Suppose the tax rate is $28\%,$ and the opportunity cost of capital is $8\mathrm{.}5\%.$ Find the total present value of the tax shields for case $1,2,$ and $3($PV$1,$ PV$2,$ PV$3).$

$($Hint: tax$-$shields $=$ depreciation x tax rate. In other words, the tax that is saved due to the reduction in taxable income due to depreciation$)$

$($$$93291,$ $$90958,$ $$96193)$

$($$$84881,$ $$79950,$ $$85950)$

$($$$75476,$ $$72749,$ $$78249)$

$($$$86514,$ $$80427,$$$88216)$

$($$$66212,$ $$72749,$ $$70224)$