Your company is considering a project that would require purchasing 7.9 million worth of new equipment. Determine the present value of the depreciation tax shield associated with this equipment if the firms rate is 38%, the appropriate cost of capital is 9%, and the equipment can be depreciated.

A. Straight line over a ten year period with the first deduction starting in the new year. The present value of the depreciation tax shield associated with this equipment is $ million (Round the final answer to three decimal places. Round all intermediate values to four decimal places as needed)

B. Straight line ove a five year period, with the first deduction starting in one year. The present value of the depreciation taxshield associated with the equipment is $ million. (Round the final answer to three decimal places. (Round all intermediate values to four decimal places as needed)

C. Using MACRS depreciation with a five year recovery period and starting immediately. The present value of the depreciation tax shield associated with the equipment is $ million. (Round the final answer to three decimal places. Round all intermediate values to fourdecimal places as needed)

D. Fully as an immediate deduction. The present value of the depreciation tax shield is $ million (Round the final answer to three decimal places. Round all intermediate values to four decimal places as needed)