Markov Manutacturing recently spent $14 milion 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 corporate tax rate is 20%. 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? Ramer than straighine depreciation, suppose Markov will use the MACRS depreciation method for five-your property Calculate the depreciation tax shield each d. I Markov has a choice between straight-line and MACRS depreciation schedules, and its marginal corporate tax rate is expected to remain constant, which should it choose? Why? . How might your answer to part (d) change it Markov anticipates that its marginal corporate tax rate will change substantially over the next five years? a. What is the annual depreciation expense associated with this equipment? The annual depreciation expense is $2.000 million (Round to three decimal pool.) b. What is the annual depreciation tax shield? The annual depreciation tax shold i 8500 million (Round to three decimal places) 6. Rather than straight line depreciation, suppone Markov will use the MACRS depreciation method for live your property Calculate the depreciation tax shield each year for this equipment under this accelerated depreciation schedule The depreciation tax shie year Olss million (Round to three decimal places) The depreciation tax shield year is s million (Round to three decimal places.) The depreciation tax shield year 2 is $million (Pound to three decimal places.) The depreciation tax shield year 3 is 8 million, (Round to three decimal places.) Click to select your answers)