There are five years of remaining useful life on the old PC. The old PC has a zero book value. The new PC is expected to last five years. Michele will follow a straight-line depreciation for the new PC. Depreciation value of the new PC is 1,500. He is subject to a 24% tax rate. The new PC is expected to be more efficient and durable than the previous one and can result in reduced operating expenses of 500 per year. Michele will buy an antivirus software for the PC that calls for annual payments of 20.