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You are considering adding a bakery on to one of your firm's existing restaurants. This will entail an investment of $50,000 in new equipment. This
You are considering adding a bakery on to one of your firm's existing restaurants. This will entail an investment of $50,000 in new equipment. This equipment will be depreciated straight line over five years. If your firm's marginal corporate tax rate is 25%, then what is the value of the bakery's depreciation tax shield in the first year of operation?
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