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Licorne Inc. is considering a project which would involve the purchase of new manufacturing equipment at a cost of $8900. The equipment would be depreciated

Licorne Inc. is considering a project which would involve the purchase of new manufacturing equipment at a cost of $8900. The equipment would be depreciated on a straight-line basis to a book value of $500 over its 6-year useful life. The firm's marginal tax rate is 35%. The annual depreciation tax shield is $_______.

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