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please help asap A firm is considering odding a new product line that is expected to increase annual sales by $418,000 and casn expenses by
please help asap
A firm is considering odding a new product line that is expected to increase annual sales by $418,000 and casn expenses by $337000. The inilial investment will require $390,000 in faced assets that will be depreciated using the straight-line method to a zero book value over the six.year ife of the project. Ignore bonus depreciation. The company has a marginal tax rate of 21 percent. What is the annual value of the depreciation tax shield? Muatiple Chotce $13,650 $13,160 527,300 $163,800 A firm is considering odding a new product line that is expected to increase annual sales by $418,000 and casn expenses by $337000. The inilial investment will require $390,000 in faced assets that will be depreciated using the straight-line method to a zero book value over the six.year ife of the project. Ignore bonus depreciation. The company has a marginal tax rate of 21 percent. What is the annual value of the depreciation tax shield? Muatiple Chotce $13,650 $13,160 527,300 $163,800 Step by Step Solution
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