The Muffin Plant is considering an expansion. The project will require the purchase of $980,000 in new equipment. The equipment be depre to zero over the 7 year life of the project. The equipment can be scraped at the end of the project for 5 percent of its original cost Ames estimated at $480.000. Net working capital equal to 20 percent of sales will be required to support the project. The required return is 16 perce 35 percent. What is the value of the depreciation tax shield in year 4 of the project? Multiple Choice $49.000 $52,200 By $68,600 $71.400 crew The project were the purchase of SRO,000 in new equipment. The equipment will be deprecated strane of the protect the count can be scraped at the end of the project for 5 percent of its original cost, Annales from this project me Met wel to 20 percent of sales will be required to support the project. The required return percent and the taxate is Worme de carton lain ar 4 of the project