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. A project will increase sales by $300,000 and cash expenses by $55,000. The project will cost $500,000 and be depreciated using the straight-line method

. A project will increase sales by $300,000 and cash expenses by $55,000. The project will cost $500,000 and be depreciated using the straight-line method to a zero book value over the 5-year life of the project. The company has a marginal tax rate of 40%. What is the yearly value of the depreciation tax shield?

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