Please just answer the question h

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 method for the five year life of the property Calculate the depreciation tax shield each year for this equipment under this accelerated depreciation schedule d. If 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? e. How might your answer to part (d) change if Markov anticipates that its marginal corporate tax rate will increase substantially over the next five years? f. Under the TCJA of 2017, Markov has the option to take 100% Bonus depreciation in the year in which the equipment is put into use This means that in that year, Markov would take the full depreciation expense equivalent to the cost of buying the equipment Rather than straight line depreciation, suppose Markov will use the bonus depreciation method. Calculate the depreciation tax shield each year for this equipment with bonus depreciation g. If Markov has a choice between straight-line, MACRS and bonus depreciation schedules and its marginal corporate tax rate is expected to remain constant which schedule should it choose? Why? h. How might your answer to part() change of 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 Do Oupos ange HVO MUSIC In all cases, its total depreciation tax shield is the same. But with bonus depreciation, it receives the entire depreciation tax shield in year 2-thus bonus depreciation leads to a higher NPV of Markovs FCF In al cases, its total depreciation tax sholds the same But with bonus depreciation is receives the entire depreciation tax shield in yoar 3-hus, bonus depreciation leads to a higher NPV of Markovs FCF h. How might your answer to part() change it Markov anticipates that its marginal corporate tax rate will increase substantially over the next five years (Select from the drop down menus) As in the case of MACRS if the tax rate will increase substantally then Markov may be better off claiming Y depreciation expenses in 7 years because the tax benefit at that time will be greater later Click to select your answers) and then click Check Answer early All parts showing