Question
Keene, Inc., is considering a new seven-year expansion project that requires an initial fixed asset investment of $210,000. The fixed asset will be depreciated straight
Keene, Inc., is considering a new seven-year expansion project that requires an initial fixed asset investment of $210,000. The fixed asset will be depreciated straight line to zero over its 7-year tax life, after which time it will be worthless. Assume the tax rate is 34%. What is the projects depreciation tax shield?
| a. | $10,200 | |
| b. | $19,800 | |
| c. | $26,400 | |
| d. | $13,600 |
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Personal Finance Turning Money Into Wealth
Authors: Arthur J. Keown
6th Edition
0132719169, 978-0132719162
