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Newton Company is considering the purchase of an asset that will provide a depreciation tax shield of $20,400 per year for 10 years. Assuming the

Newton Company is considering the purchase of an asset that will provide a depreciation tax shield of $20,400 per year for 10 years. Assuming the company is subject to a 40% tax rate during the period, and a zero salvage value, what is the depreciable cost of the new asset?

$204,000

$510,000

$340,000

Can't be determined from the information provided

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