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A project has sales of $49,000, costs of $38,000, depreciation of 6,000, interest expense of $300, and a tax rate of 30 percent. What is

A project has sales of $49,000, costs of $38,000, depreciation of 6,000, interest expense of $300, and a tax rate of 30 percent. What is the value of the depreciation tax shield?

a.

$1,800

b.

$4,500

c.

$1,500

d.

$4,200

e.

$1,645

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