Question
The Sisyphean Company is considering a new project that will have an annual depreciation expense of $6 million. If Sisyphean's marginal corporate tax rate is
The Sisyphean Company is considering a new project that will have an annual depreciation expense of $6 million. If Sisyphean's marginal corporate tax rate is 35%, then what is the value of the depreciation tax shield on the company's new project?
| A. | $1,800,000 | |
| B. | $1,200,000 | |
| C. | $2,100,000 | |
| D. | $1,500,000 |
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International Financial Management
Authors: Cheol Eun, Bruce Resnick
5thEdition
0073382345, 9780073382340
