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wrote...
Posts: 152
2 weeks ago
Use the information for the question(s) below.

Shepard Industries is evaluating a proposal to expand its current distribution facilities.  Management has projected the project will produce the following cash flows for the first two years (in millions).

Year12
Revenues12001400
Operating expense450525
Depreciation240280
Increase in working capital6070
Capital expenditures300350
Marginal corporate tax rate30%30%


The depreciation tax shield for Shepard Industries project in year 1 is closest to:

▸ $96

▸ $84

▸ $72

▸ $168
Textbook 
Fundamentals of Corporate Finance
Edition: 2nd
Authors:
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wrote...
2 weeks ago
$72
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