Net present value calculation: Chapter 12- Strategy and Capital Investments 12-29 Value of Accelerated Depreciation: Sum-of-Years’-Digits (SYD) and Double-Declining-Balance (DDB) Methods Freedom Corporation acquired a fixed asset for $100,000. Its estima

Net present value calculation: Chapter 12- Strategy and Capital Investments 12-29 Value of Accelerated Depreciation: Sum-of-Years’-Digits (SYD) and Double-Declining-Balance (DDB) Methods Freedom Corporation acquired a fixed asset for $100,000. Its estimated life at time of purchase was four years, with no estimated salvage value. Assume a discount rate of 8% and an income tax rate of 40%. Required 1. What is the incremental present value (rounded to the nearest whole dollar) of the tax benefits resulting from calculating depreciation using the sum-of-the-years’-digits (SYD) method rather than the straight-line (SLN) method on this asset? Use the SYD and SLN functions in Excel to calculate depreciation charges. 2. What is the incremental present value (rounded to the nearest whole dollar) of the tax benefits resulting from calculating depreciation using the double-declining-balance (DDB) method rather than the straight-line (SLN) method on this asset? Use the SLN and DDB functions in Excel to calculate depreciation charges. 3. What is the incremental present value (rounded to the nearest whole dollar) of the tax benefits resulting from using MACRS rather than straight-line (SLN) depreciation? The asset qualifies as a three-year asset. Use the half-year convention. (Refer to Exhibit 12.4 for MACRS depreciation rates.) 12-33 Using Arrays in Excel; NPV Analysis Please refer to footnote 14 and the data referenced in the footnote. Required 1. Follow the directions given in footnote 14 to calculate the NPV of the referenced investment project. (Hint: If necessary, consult the following: