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A firm wants to build a new facility in South Carolina. This will require a significant investment in fixed assets. The depreciation on these fixed

A firm wants to build a new facility in South Carolina. This will require a significant investment in fixed assets. The depreciation on these fixed assets is $22,000 per year. If the firm has a 36% tax rate, what is the value of the Depreciation Tax Shield (DTS) for project?

Multiple Choice

  • $14,080

  • -$14,080

  • $7,920

  • - $7,920

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