Burry Inc. has provided the following data to be used in evaluating a proposed investment project: Initial investment ................ $750,000 Annual cash receipts .......... $563,000 Life of the project ............... 7 years Annual cash expenses ......... $310,000 Salvage value ....................... $75,000 Tax rate ................................ 30% For tax purposes, the entire initial investment without any reduction for salvage value will be depreciated over 5 years. The company uses a discount rate of 11%. By how much does the depreciation deduction reduce taxes each year in which the depreciation deduction is taken? The Dill and Gherkin Law Firm is contemplating the decision to open up a branch office across town. The firm would sign a 5-year lease for a fully furnished office for $24,000 per year. The lease also requires a $30,000 security deposit upon signing. This deposit will be given back at the end of the 5-year lease term. No other amounts will need to be invested. However, additional operating costs are expected to be $65,000 per year for the 5 years. The firm expects to generate an additional $100,000 of revenue per year for the 5 years from the branch office. The firm's after-tax cost of capital is 16% and its tax rate is 30%. The net present value of this investment project is closest to: Select one: 0 a. $(509) O b. $5,206 0 c. $9,490 d. $14,206