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Yankee Freight provides truck freight services throughout the northeast United States. The firm is considering an investment in improved logistics management requiring a main-frame computer

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Yankee Freight provides truck freight services throughout the northeast United States. The firm is considering an investment in improved logistics management requiring a main-frame computer and communications software, which would cost $1,020,000 and have an expeed life of eight years. For tax purposes, the investment will be depreciated using the straight -line method, with no salvage value. The company's cost of capital and tax rates are 8 and 30 percent, respectively. a. Compute the present value of the depreciation tax benefit. Note: Round your final answer to the nearest whole dollar. b. Assume instead that Yankee Freight uses the double-declining balance method of depreciation for tax purposes with a five-year life. Compute the present value of the depreciation tax benefit. Note: Round your final answer to the nearest whole dollar

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