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If a firm suffers reduced profits to the point of moving into a lower tax bracket, one would expect the depreciation tax shield, all else
If a firm suffers reduced profits to the point of moving into a lower tax bracket, one would expect the depreciation tax shield, all else the same, to become E More valuable. None of these are correct Less valuable. Unchanged since depreciation doesn't change. Unchanged, because changes in tax rates don't matter once a project is in place
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