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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

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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 project's depreciation tax shield? a $19,800 b. $26,400 c. $10,200 d. $13,600

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