Mendota Company has purchased equipment for $400,000. After it is fully depreciated, the equipment will have no salvage

[answerhappygod]

Mendota Company has purchased equipment for $400,000. After it
is fully depreciated, the equipment will have no salvage value.
Mendota may select either of the following depreciation schedules
for tax purposes:
Depreciation
1
2
3
4
5
6
Assuming a 40% tax rate and a 12% desired annual return, compute
the total present value of the tax savings provided by these
alternative depreciation tax shields.
Round answers to the nearest whole number. Use rounded answers to
calculate total.
Option 1 depreciation:
1
2
3
4
5
6
Option 2 depreciation:
1
2
3
4
5
6
Which depreciation schedule would be more attractive to
Mendota?
AnswerOption 1Option 2
PreviousSave AnswersFinish attempt ...