Your firm is considering a project that would require purchasing $ 7.5 million worth of new equipment.Determine the present value of the depreciation tax shield associated with this equipment if the firm's tax rate is 40 %, the appropriate cost of capital is 8 %, and the equipment can be depreciated:

**Round to 4 decimal places as needed**

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

The present value of the depreciation tax shield associated with this equipment is?million.

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

The present value of the depreciation tax shield associated with this equipment is?million.

c. Using MACRS depreciation with a five-year recovery period and starting immediately.

The present value of the depreciation tax shield associated with this equipment is?million

.

d. Fully as an immediate deduction.

The present value of the depreciation tax shield is?million