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Shopard Industries is evaluating a proposal to expand its current distribution facilities Management has projected the project will produce the following cash flows for the
Shopard Industries is evaluating a proposal to expand its current distribution facilities Management has projected the project will produce the following cash flows for the first two years die motora) Year 1 2 Revenues 1,075 1.325 Operating expense 400 600 Depreciation 210 280 Increase in working capital 40 80 Capital expenditures 280 330 Marginal corporate tax rate 30% 30% The depreciation tax shield for Shepard Industries project in year 2 is closest to O A $126 OB $63 C. $101 D584
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