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2. Suppose that a project has a depreciable investment of $600,000 and falls under the following accelerated depreciation schedule for tax purposes: year 1: 20

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2. Suppose that a project has a depreciable investment of $600,000 and falls under the following accelerated depreciation schedule for tax purposes: year 1: 20 percent; year 2: 32 percent; year 3: 19.2 percent; year 4: 11.5 percent; year 5: 11.5 percent; and year 6: 5.8 percent. Tax rate is 35%. Calculate the annual depreciation schedule and depreciation tax-shield. 2 3 5 6 (in '000) Depreciation (Books) Depreciation Tax- Shield (Books) Depreciation (Tax) Depreciation Tax- Shield (Tax)

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