Problem 9-07 A firm has earnings of $11,000 before Interest, depreciation, and taxes. A new plece of equipment is installed at a cost of $11,000. The equipment will be deprecated over five years, and the firm pays 25 percent of its earnings in taxes. What are the earnings and cash flows for the firm in years 2 and 5, using the two methods of depreciation? Use Exhibit 9.4 to answer the questions. Round your answers to the nearest dollar Modified Accelerated Straight line Cost Recovery Year 2 Years Year 2 Year 5 Earnings before depreciation and taxes 11,000 11,000 11,000 11,000 Depreciation expense Earnings after depreciation Taxes (25% tax rate) Net earnings DILE DIEN Cash flow Check My Work Olenko