Newton Company is considering the purchase of an asset that will provide a depreciation tax shield of $10,000 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?

Question 8 options:

1)

$100,000

2)

$250,000

3)

$400,000

4)	Can't be determined from the information provided