Saved Submit 36 Help Save & Exit Check my work A company purchases an asset that costs $49,000. This asset qualifies as three-year property under MACRS. The company uses an after-tax discount rate of 8% and faces a 31% income tax rate. (Use Table 1. Table 2 and Exhibit 12.4.) 1. Demonstrate that the PV of the depreciation deductions, when the income tax rate is 31%, is $13,088. 2. Given an after-tax discount rate of 8%, what tax rate would be needed in order for the PV of the depreciation deductions to equal $15,190? Use the Goal Seek function of Excel Complete this question by entering your answers in the tabs below. Required 1 Required 2 Demonstrate that the PV of the depreciation deductions, when the income tax rate is 31%, is $13,088. (Do not round intermediate calculations. Round "PV factor" to 3 decimal places and other answers to 2 decimal places.) Depreciation Tax PV Present Year MACRS % Deduction Savings Factor Values 1 2 % X 3 4 % Required 2 > Prev 1 of 10 Next >