i

In class we learned how to calculate the annual depreciation tax shield on large capital investment projects. In the case of your lemonade stand, the total tax allowable depreciation is $_______.

1. $1,025
2. $750
3. $275
4. $154

j

The depreciation tax-shield related to the first year of the lemonade stand would be claimed in year _____.

1. 1
2. 3
3. 4
4. 2

k

The depreciation tax-shield related to year 2 would be claimed in year ______ and would be $____.

1. year 3, $13
2. year 2, $13
3. year 4, $9
4. year 3, $11