PleaseanswerQuestions7to10belowusingthefollowinginformation:Exhibit1CalicoFabricsLimitedisevaluatinganewthree-yearproject,forwhichtheinitialoutlaywillbe$160,000.Profitbeforedepreciationandtaxisexpectedtobe$34,000inyear1,$44,000inyear2and$54,000inyear3.Thenewequipmentwillbedepreciatedat20percentdiminishingvalue,andisexpectedtobesoldattheendofthreeyearsfor$90,000.Thecompanytaxrateis30percent.RefertoExhibit1.ThedepreciationexpenseinYear2is: