Sharpe Machining Company purchased industrial tools costing $170,000, which fall in the 3year property class under MACRS. Use Appendix A and Exhibit 16-9 for your reference. (Use appropriate factoris} from the tables provided.) Required: 1. Prepare a schedule of depreciation deductions assuming: a. The firm uses the accelerated depreciation schedule specified by MACRS. b. The firm uses the optional straightline depreciation method and the halfyear convention. 2. Calculate the present value ofthe depreciation tax shield under each depreciation method listed in requirement 1. Sharpe Machining Company's afterrtax hurdle rate is 12 percent, and the firm's tax rate is 30 percent. Complete this question by entering your answers in the tabs below. Req 1A Req 13 Reg 2 The firm uses the accelerated depreciation schedule specified by MACRS. (Round your final answers to the nearest dollar amount.) Req 1A Req 1B Req 2 The firm uses the optional straight-line depreciation method and the half-year convention. (Round intermediate calculations and final answers to the nearest dollar amount.) Year Straight-Line Depreciation 1 2 3 4Req 1A Req 1B Req 2 Calculate the present value of the depreciation tax shield under each depreciation method listed in requirement 1. Sharpe Machining Company's after-tax hurdle rate is 12 percent, and the firm's tax rate is 30 percent. (Round intermediate calculations and final answers to the nearest dollar amount.) Present Value of Depreciation Tax Shield Under MACRS Accelerated depreciation Under MACRS Straight-line depreciation Allegience Insurance Company's management is considering an advertising program that would require an initial expenditure of $183,705 and bring in additional sales overthe next five years. The projected additional sales revenue in year 1 is $86,000, with associated expenses of $30,500. The additional sales revenue and expenses from the advertising program are projected to increase by 10 percent each year. Allegience's tax rate is 30 percent. (HintJThe $183,705 advertising cost is an expense.) Use appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Required: 1. Compute the payback period for the advertising program. 2. Calculate the advertising program's net present value. assuming an aftertax hurdle rate of 10 percent. {Round your intermediate calculations and nal answer to the nearest whole dollar.) Payback period 2. Net present value