Paulie needs to expand his production beyond what can be grown in his own garden, and he's considering two capital investment opportunities: buying a piece of farmland in the countryside or buying a commercial greenhouse in the city. The farmland in the countryside is for sale for $300,000. Assume that this property could increase Paulie's Produce revenues by $360,000 per year. As land is not depreciable, Paulie would be unable to take any depreciation on this investment. After 5 years, Paulie plans to retire, and he expects he could sell the farmland for $300,000 The commercial greenhouse is for sale for $120,000. Assume this property would increase Paulie's revenues by $240,000 per year for the first four years, and then $155,000 per year for the fifth year. Like the farmland, Paulie would plan to sell this property in 5 years when he wants to retire. He expects this commercial greenhouse could be sold for $50,000 at that time. Paulie's accountant assures him that Paulie could depreciate the greenhouse using straight line depreciation over a 4-year period (assume the $50k selling price is also the salvage value). Assume that the pre-tax profit margin on Paulie's Produce revenues is 30% (before subtracting depreciation) and that Paulie's Produce is in a 40% tax bracket. Immediate working capital investments would be required for both options ($20,000 for the farmland, $10,000 for the commercial greenhouse). Assume that working capital would be completely recovered when the property is sold off after 5 years. Paulie's cost of capital is 12%. Use this data to answer questions #8-#10. Question 10 1 pts Calculate the present value of the tax shield provided by depreciation for the commercial greenhouse investment