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A month 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 2 is closest to:

▸ $96

▸ $196

▸ $84

▸ $72
Textbook 

Fundamentals of Corporate Finance

Edition: 2nd
Authors:
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Posts: 228
A month ago
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wrote...
A month ago
I appreciate what you did here, answered it correctly Smiling Face with Open Mouth
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