P8-17 (similar to) Question Help Your firm is considering a project that would require purchasing $7 1 million worth of new equipment Determine the present value of the depreciation tax shield associated with this equipment if the firm's tax rate is 20% using the alternative depreciation methods below Note that because the depreciation tax shield is essentially a riskless cash flow (assuming the firm's tax rate remains constant), the appropriate cost of capital to evaluate the benefit from accelerated depreciation is the risk-free rate assume this rate is 9% for all maturities a. Straight line over a 10-year period, with the first deduction starting in one year b. Straight line over a five year period, with the first deduction starting in one year c. Using MACRS depreciation with a five-year recovery penod and starting immediately d. 100% bonus depreciation (all the depreciation expense occurs when the asset is put into use in this case immediately) a. Straight line over a ten year period, with the first deduction starting in one year The present value of the depreciation tax shield associated with this equipment is $ million (Round the final answer to three decimal places. Round all intermediate values to four decimal places as needed)