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johnpaech johnpaech
wrote...
Posts: 1098
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6 years ago
Assuming that Casa Grande Farms depreciates these tractors using MACRS depreciation method for three-year property starting immediately, then the annual depreciation tax shield in year 2 is closest to:
A) 20,785
B) 27,991
C) 84,000
D) 180,000
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
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wrote...
6 years ago
B
Explanation:  B) Depreciation Tax Shield = 540,000 × .1481 × .35 = 27,991
johnpaech Author
wrote...
5 years ago
Thanks for helping with my corporate finance course
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