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3) You are considering adding a microbrewery onto one of your rrn's existing restaurants. This will entail an im'estment of $43.000 in new equipment. This

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3) You are considering adding a microbrewery onto one of your rrn's existing restaurants. This will entail an im'estment of $43.000 in new equipment. This equipment will be depreciated straight line over ve years. If your rm's marginal corporate tax rate is 35%, then what is the value of the microbrewery's depreciation tax shield in the rst year of operation? A. $3,010 B. 515,050 C. 55,590 D. $8,600

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