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A2. (MACRS depreciation) Modigliani Jet Ski Company has purchased several firm cars for a total of $150,000. They are classed as five-year property. a. What is the annual depreciation charge for these assets? b. If Modigliani‚s marginal tax rate is 40%, what is the annual depreciation tax shield? c. Discounted at 8%, what is the present value of the depreciation tax shields?

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