Question $11$

A project will increase sales by $$280,000$ and cash expenses by $106,000.$ The project will

cost $$280,000$ and be depreciated using the straight$-$line method to a zero book value over

the $4-$year life of the project. The company has a marginal tax rate of $34\%.$ What is the

value of the depreciation tax shield?

$$15,400$

$$16,800$

$$17,460$

$$21,740$

$$23,800$