Determine the value of depreciation tax shield


Project will increase sales by $140,000 and cash expenses by $95,000. Project will cost $100,000 and be depreciated by using straight-line method to a zero book value over 4-year life of project. Company has the marginal tax rate of 34 percent. Determine the value of depreciation tax shield?

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Project Management: Determine the value of depreciation tax shield
Reference No:- TGS033069

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