Telstar Communications is going to purchase an asset for $300,000 that will produce $140,000 per year for the next four years in eamings before depreciation and taxes. The asset will be depreciated using the three-year MACRS depreciation schedule in Table 12 12. (This represents four years of depreciation based on the half-year convention) The firm is in a 25 percent tax bracket Fill in the schedule below for the next four years Year 1 Year 2 Year 3 Year 4 $ 0$ 05 0 0 Earnings before depreciation and taxes Depreciation Earnings before taxes Taxes Earnings after taxes Depreciation Cash flow S 0 S 0 $ 05 0 $ 05 05 0 0 Table 12-12 Depreciation percentages (expressed In decimals) Depreciation Year 3-Year MACRS 5-Year MACRS 7-Year MACRS 10-Year MACRS 15-Year MACRS 20-Year MACRS SERERE 1 2 3 0.333 0.445 0.148 0.074 3 4 0.200 0.320 0.192 0.115 0.115 0.058 0.143 0.245 0.175 0.125 0.089 0.089 0.089 0.045 5 6 7 8 0.100 0.180 0.144 0.115 0.092 0.074 0.066 0.066 0.065 0.065 0.033 CO 0.050 0.095 0.086 0.077 0.0 0.062 0.059 0.059 0.059 0.059 0.059 0.059 0.059 0.059 0.059 0.030 9 10 11 12 13 ....... 14 15 16 17 18 19 20 21 0.038 0.072 0.067 0.062 0.057 0.053 0.045 0.045 0.045 0.045 0.045 0.045 0.045 0.045 0.045 0.045 0.045 0.045 0.045 0.045 0.017 1.000 *** ***** 1.000 1.000 1.000 1.000 1.000