For the next three questions, please use the 10 -year MACRS schedule found in the table above. 10. Let's say you spend $10,000,000 on a depreciable asset that uses the 10-year MACRS schedule. What will the book value of this asset be at the end of year 2 ? a. $2,800,000 b. $4,800,000 c. $5,200,000 d. $7,200,000 11. If you sell this asset for $8,000,000 at the end of year 2 , what is the TOTAL after-tax salvage value of the sale, assuming a 40% tax rate? a. $7,680,000 b. $8,320,000 c. $4,800,000 d. $5,120,000 12. If you were the CFO of a company investing in this asset, in general would you prefer a MACRS deprecation schedule or a straight line depreciation schedule, and why? a. Straight-line, since the calculations are more straightforward b. Straight-line, since it will result in higher tax-deductible depreciation expenses in the later years of a project c. MACRS, since it will result in higher net income figures in the early years of a project d. MACRS, since it will result in higher operating income in the early years of a project