Markov Manufacturing recently spent $13.8 million to purchase some equipment used in the manufacture of diak dives. The firm expects that this equipment will have a useful life of five years, and its marginal corporate tax rate is 21% The What is the annual depreciation expense associated with this qu company plans to use straight depreciation What is the annual depreciation tax shield? Rather than straight line depreciation, suppose Markov will use the MACRS depreciation method for the five-year life of the property. Calculate the deprecation tax shield each year for this equipment under this accelerated depreciation dit Markov has a choice between straight-line and MACRS depreciation schedules, and its marginal corporate tax rate is expected to remain constant, which schedule should it choose? Why? How might your answer to pant (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 What the annual depreciation expected with this equipment What is the and deption tax shield The lion sex shield is million (Round to three d Rather than in depreciation, suppose Manor will use the MACRS deprecation method for The end for yearn found the decimal places.) The deprints for your mound the decimal) The deprecation tax deyar Calculate the depreciation tax Markov Manufacturing recently spent $19.8 million to purchase some equipment used in the company 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-line depreciation, suppose Markov will use the MACRS depreciation n schedule. d. If Markov has a choice between straight-line and MACRS depreciation schedules, and its r e. How might your answer to part (d) change if Markov anticipates that its marginal corporate Note: Assume that the equipment is put into use in year 1. a. What is the annual depreciation expense associated with this equipment? The annual depreciation expense is $ million. (Round to three decimal places.) b. What is the annual depreciation tax shield? The annual depreciation tax shield is $ million. (Round to three decimal places.) c. Rather than straight-line depreciation, suppose Markov will use the MACRS depreciation meth schedule. The depreciation tax shield for year 1 is $ The depreciation tax shield for year 2 is $ The depreciation tax shield for year 3 is $ The depreciation tax shield for year 4 is $ The depreciation tax shield for year 5 is $ million. (Round to three decimal places.) million. (Round to three decimal places.) million. (Round to three decimal places.) million. (Round to three decimal places.). million. (Round to three decimal places.) The depreciation tax shield for year 6 is $ million. (Round to three decimal places.) d. If Markov has a choice between straight-line and MACRS depreciation schedules, and its margina used in the manufacture of disk drives. The firm expects that this equipment will have a useful life of five years, and its marginal corporate tax rate is 21%. The depreciation method for the five-year life of the property. Calculate the depreciation tax shield each year for this equipment under this accelerated depreciation medules, and its marginal corporate tax rate is expected to remain constant, which schedule should it choose? Why? warginal corporate tax rate will increase substantially over the next five years? ant? hal places.) ecimal places.) MACRS depreciation method for the five-year life of the property. Calculate the depreciation tax shield each year for this equipment under this accelerated depreciation cee decimal places.) wee decimal places) three decimal places) three decimal places.)