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Mr. Yoshida bought a new $15.000 freezer for his grocery store on January 2, 2013. The freezer has a 3-year economic life and recovery period,

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Mr. Yoshida bought a new $15.000 freezer for his grocery store on January 2, 2013. The freezer has a 3-year economic life and recovery period, Mr. Yoshida's recuired rate of retum is 14%, and his tax rate is 35%. (Click the icon to view the present value of $1 of MACRS Depreciation table.) (Click the icon to view the present value factor table.) B (Click the icon to view the present value annuity factor table. Read the requirements Requirement 1. Suppose Mr. Yoshide uses straight-line depreciation for tex purposes. Compute the PV of the tax savings from depreciation. Assume that Mr. Yoshida takes a full year of depreciation at the end of 2013. (Enter the present value factor to four decimal places, "X.XXXX" Round dollar amounts the nearest whole number.) Present Value of Ordinary Annuity of $1 Annual Cash Total Present at 3 years, 14% Inflow Value Present value of annuity of equal annual: After tax cash savings from depreciation 2.3216 por year = Requirement 2. Suppose Mr. Yoshida uses MACRS depreciation for tax purposes. Compute the PV of the tax savings from depreciation. (Round your answer to the nearest whole number.) Begin by selecting the formula you will need to calculate this amount PV of the MACRS Tax Savings The PV of the tex savings from depreciation using MACRS is Requirement 3. Suppose Mr. Yoshida was allowed to immediately deduct the entire cost of the freezer for tax purposes. Compute the PV of the tax savings from depreciation. Begin by selecting the formula you will need to calculate this amount. PV of the Immediate Write-off Tax Savings The PV of the tax saving from the immediate deduction of the freezer for tax purposes is $17. Choose from any list or enter any number in the input fields and then continue to the next

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