Karsted Air Services is now in the final year of a project. The equipment originally cost $24 million, of which 90% has been depreciated. Karsted can sell the used equipment today for $6 million, and its tax rate is 35%. What is the equipment's after-tax salvage value? Write out your answer completely. For example, 13 million should be entered as 13,000,000. Round your answer to the nearest dollar.

$ ______

Kristin is evaluating a capital budgeting project that should last for 4 years. The project requires $800,000 of equipment. She is unsure what depreciation method to use in her analysis, straight-line or the 3-year MACRS accelerated method. Under straight-line depreciation, the cost of the equipment would be depreciated evenly over its 4-year life (ignore the half-year convention for the straight-line method). The applicable MACRS depreciation rates are 33%, 45%, 15%, and 7%. The company's WACC is 11%, and its tax rate is 40%.

1. What would the depreciation expense be each year under each method? Round your answers to the nearest cent.

   Year	Scenario 1 (Straight-Line)	Scenario 2 (MACRS)
   1	$	$
   2	$	$
   3	$	$
   4	$	$

2. Which depreciation method would produce the higher NPV? -Select-Straight-LineMACRSItem 9 How much higher would the NPV be under the preferred method? Round your answer to the nearest cent.

I am struggling with these!