Problem 9.2:Accelerated Depreciation Tax Advantages The Lecourt Corporation is trying to decide whether it should depreciate its new equipment using the straight-line method or double-declining-balance method. The company purchased the equipment on January 1, at a cost of $150,000, with an estimated residual value of $30,000, and a useful life of five years.The company pays its taxes at the end of each year and expects its effective income taxes rate to be 35%. The company expects to be able to invest at an after-tax rate of 4% Calculate the increase in resources the Lecourt Corporation can expect to have at the end of five years by using double-declining-balance depreciation instead of straight-line depreciation Tax Advantage! Cash Available! 4% After-tax to Invest Date DDB Vs SL Return + $4,200.00 $ $ 17,304.00 ? - $7,560.00$ 686.25 Totals$ $2,293.71 $