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ABC is considering adding a new product line that is expected to increase annual sales by $418,000 and cash expenses by $237,000 The initial investment
ABC is considering adding a new product line that is expected to increase annual sales by $418,000 and cash expenses by $237,000 The initial investment will require $400,000 in fixed assets that will be depreciated using the straight-line to a zero salvage vakue over the four-year life of the project The company has a marginal tax rate of 32 percent What is the value of the depreciation tax shield in year 2?
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