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A firm is considering adding a new product line that is expected to increase annual sales by $418,000 and cash expenses by $337,000. T initial

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A firm is considering adding a new product line that is expected to increase annual sales by $418,000 and cash expenses by $337,000. T initial investment will require $390,000 in fixed assets that will be depreciated using the straight-line method to a zero book value over th six-year life of the project. Ignore bonus depreciation. The company has a marginal tax rate of 21 percent. What is the annual value of the depreciation tax shield? Multiple Choice Prov 9 of 25 www --- Next $136,500 $27,300 $13,160 F

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