Question: For a typical 1 8 0 , 0 0 0 investment in equipment with a five yar life and no salvage value, determine the present

For a typical 180,000 investment in equipment with a five yar life and no salvage value, determine the present value of the advantage resulting from the use of double-declining depreciation as opposed to straight-line depreciation. Assume income tax rate of 21% and a discount rate of 20%. Thre will be a switch from double-declining balance to straight-line depreciation in the fourth year. Calculate the preesent value of double-declining balance tax shield. Quation 5 Not complece Markes our of 10.00, P Hag quession NPV with Income Taxes: Straight-Line versus Accelerated Depreciation Required that there will be a switch from double-declining balance to straight-line depreciation in the fourth year.
Note: Round your answers below to the nearest whole dollar.
Present value of double.decining dalance tax shield s
Present value of straightsline tax shieb 5
Adrantage of double-declining balance depreciation $
 For a typical 180,000 investment in equipment with a five yar

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