You are a manager of a company that just spent $80,000 to purchase a piece of equipment that is expected to function for six years. If you can borrow money at 7%, what is the present discounted value of the depreciation allowance under the following circumstances?

a. You can expense the investment.

b. You depreciate using straight-line depreciation methods.

c. You depreciate over four years using accelerated straight-line depreciation methods.