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You are expanding your operations and buying a new machine. The new machine will cost $430,000 and will cost $22,000 to ship and install. The

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You are expanding your operations and buying a new machine. The new machine will cost $430,000 and will cost $22,000 to ship and install. The new machine will make more products so you will need to purchase $40,000 of inventory to meet the demand. You plan to operate the machine for two years and then sell the machine for $200,000. The corporate tax rate is 35% If the depreciation rates are 12% in Year 1 and 18% in Year 2. what is the depreciation tax shield for Year 1 of the project? O $21.696.00 O 518,984.00 $17.600,00 519.404.00 0 $10,000.00

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