Question $10$

$2$ pts

What is the depreciation tax shield for the year given the following information: Initial cost of $$100,000,$ MACRS percent rate of $\mathrm{.}3333$ and a corporate tax rate of $21\%?$

$$6,999$

$$21,000$

$$33,330$

$$100,000$

Question $11$

$2$ pts

If a company bought a building years ago for $$500,000$ and hasn't done anything with the building to this point. Now they are thinking of remodeling the building and turning it into a restaurant. Which of the following would best describe the $$500,000$ they paid for the building when considering this new project?

Relevant cash flow

Depreciation tax shield

Opportunity cost

Sunk cost