Question: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 MACRS Depreciation Rate ?14.29% ?24.49% ?17.49% ?12.49% ?8.93% ?8.92%

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

MACRS

Depreciation Rate

?14.29%

?24.49%

?17.49%

?12.49%

?8.93%

?8.92%

?8.93%

?4.46%

Massive? Amusements, an owner of theme? parks, invests $ 60 million to build a roller coaster. This can be depreciated using the MACRS schedule shown above. How much less is the depreciation tax shield for year 4 under MACRS depreciation than under? 7-year, straight-line? depreciation, if the tax rate is 35?%?

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