please give this answer in simple form

Q4 D. (20 Marks) 1. Why depreciation plays such an important role in the company and what is the relationship with tax? Show a simple Income Statement and the effect of depreciation on tax. (10 marks) You purchase equipment for $100,000 and it costs $10,000 to have it delivered and installed. Based on past information, you believe that you can sell the equipment for $17,000 when you are done with it in 6 years. The company's marginal tax rate is 40%. If the present value is $25,441 and the required return on this project is 10%, what is the applicable CCA rate? (10 Marks) PV tax shield on CCA 1 IdT 1+0.5; X d +r 1 + +1