Management has always used straight-line depreciation for tax and extemalreportin reluctant to change, they are aware of the impact of taxes on a project's profitability. Required For a typical $180,000 investment in equipment with a five-year life and no salvage value, determine the present value the advantage resulting from the use of double-declining balance depreciation as opposed to straight-line depreciation. Assume an income tax rate of 21% and a discount rate of 20%. Also assume that there will be a switch from doubledeclining balance to straight-line depreciation in the fourth year. Note: Round your answers below to the nearest whole dollar