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You are tasked with comparing the tax savings from two differentdepreciation methods. You’ve purchased an asset for $100,000. Ithas a depreciable life of 5 years. The marginal tax rate is $30%.The minimum return on alternative investments is 10%.If the asset can be depreciated to zero value at the end of 5years by the “straight line method”, what is the applicabledepreciation schedule?Schedule ASchedule BSchedule CSchedule DSchedule EYear 1$20k$20k$100k$50k$75kYear 2$20k$30k$0$25k$25kYear 3$20k$25k$0$15k$0Year 4$20k$15k$0$10k$0Year 5$20k$10k$0$0k$0Which depreciation schedule would contribute the greatestsavings if it were used in an NPV calculation for the asset?Which depreciation schedule would contribute the least savingsin an NPV calculation?If schedule D were used, how much of the asset is left to bedepreciated at the end of Year 2? This is called the “book value”of the asset. That value is tracked by the accounting department asthe value of the asset (from a tax perspective) that remains on the“books”.