The Summit Petroleum Corporation will purchase an asset that qualifies for three-year MACRS depreciation. The cost is $400,000 and the asset will provide the following stream of earnings before depreciation and taxes for the next four years: Use Table 12.12 Year 1 $180,000 Year 2 236,000 Year 3 82,000 Year 4 74,800 The firm is in a 30 percent tax bracket and has a cost of capital of 12 percent. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods a. Calculate the net present value (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places.) Net present value 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 1 2 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 DN 0.100 0.180 0.144 0.115 0.092 0.074 0.066 0.066 0.065 0.065 0.033 7 8 0.050 0.095 0.086 0.077 0.069 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 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 14 15 16 17 . 18 19 20 21 1.000 1.000 1.000 1.000 1.000