Kahnemann Kookies Is Evaluating the Replacement of an Old Oven

Essay

Kahnemann Kookies is evaluating the replacement of an old oven with a new, more energy-efficient model.The old oven cost $50,000, is five years old and is being depreciated over a life of 10 years to a value of $0.00.The new oven costs $60,000 and will be depreciated over five years with no salvage value.Kahnemann uses straight line depreciation, its tax rate is 40%.Calculate:
a.the change in annual depreciation that would result from purchasing the new machine.
b.the change in taxes each year that would result from purchasing the new machine.