For these questions, please use the 5-year MACRS schedule found in the table at the bottom of this window. Let's say you spend $12,000,000 on a depreciable asset that uses the 5-year MACRS schedule. What will the book value of this asset be at the end of year 3? If you sell this asset for $9,700,000 at the end of year 3, what is the TOTAL after-tax salvege value of the sale, assuming a 40% tax rate? so If you were the CFO of a corripany investing in this asset, in general would you prefer a MACRS deprecation schedule or a straight line depreciation schedule, and why? O A. Straight-line, since the calculations are more straightforward O B. Straight-line, since it will result in higher tax-deductible depreciation expenses in the later years of a project OC. MACRS, since it will result in higher operating income in the early years of a project OD. MACRS, since it will result in higher net income figures in the early years of a project Year 5-Year - 3-Year 33.33% 7-Year 7 14.29% 1 20.00% 10-Year 15-Year 20-Year 10.00% 5.00% 3.750% 18.00% 9.50% 7.219% 14.40% 8.55% 6.677% 2 32.00 24.49% 3 14.31% 19 20% 17.49% 4 7.41% 11.52% 11.52% 7.70% 6.177 12.49% 8.93% 5 9.22% 6.93% 11.52% 5.76% 5.713% 5.285% 6 8.93% 7.37% 6.23% 8.93% 6.55% 4.888 7 . B 5.90 .... 6.90% 4.45% 4.622% 6.56% 5.91% % 4.462 9 9 10 5.90% 4.461%