Your firm is considering a project that would require purchasing $$7\mathrm{.}5$ million worth of new equipment. Determine the present value of the depreciation tax shleld associated with this equipment if the firm's tax rate is $20\%$ using the alternative depreciation methods below. Note that because the depreciation tax shield is essentially a riskless cash flow $($assuming the firm's tax rate remains constant$),$ the appropriate cost of capital to evaluate the benefit from accelerated depreciation is the risk$-$free rate; assume this rate is $5\%$ for all maturities.

a$.$ Straight$-$line over a $10-$year period, with the first deduction starting in one year:

b$.$ Straight$-$line over a five$-$year period, with the first deduction starting in one year:

c$.$ Using MACRS depreciation with a flve$-$year recovery perlod and starting immediately.

d$.100\%$ bonus depreciation $($all the depreciation expense occurs when the asset is put into use, in this case immediately$).$

a$.$ Straight$-$line over a $10-$year period, with the first deduction starting in one 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.$)$