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michlee michlee
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4 years ago
The Sisyphean Company is considering a new project that will have an annual depreciation expense of $2.5 million.  If Sisyphean's marginal corporate tax rate is 40% and its average corporate tax rate is 30%, then what is the value of the depreciation tax shield on the company's new project?

▸ $750,000

▸ $1,500,000

▸ $1,750,000

▸ $1,000,000
Textbook 
Fundamentals of Corporate Finance

Fundamentals of Corporate Finance


Edition: 2nd
Authors:
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emr21emr21
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4 years ago
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michlee Author
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#2
4 years ago
Thank you for answering so quickly
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