Question
A company anticipates a depreciation deduction of $30,000 in year 2 of a project. The companys tax rate is 30% and its discount rate is
A company anticipates a depreciation deduction of $30,000 in year 2 of a project. The companys tax rate is 30% and its discount rate is 10%. The present value of the deprecation tax shield resulting from this deduction is closest to:
| a. | $ 9,000 |
| b. | $17,355 |
| c. | $ 7,438 |
| d. | $21,000 |
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Research Methods For Accounting And Finance Global Management Series
Authors: Audrey Paterson, Kevin D. Ogorman, David Leung, Robert Macintosh, William Jackson
1st Edition
1910158895, 978-1910158890
