1. What method of depreciation would you prefer, MACRS or straight-line, if your objective is to maximize the present value of your firm's cash flows?
2. Using the following methods, calculate the depreciation schedule for an asset that has a $15,000 original cost, an expected useful life of five years, and no expected salvage value:
a. Straight-line depreciation
b. Sum-of-the-years'-digits depreciation.