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You just made a $400,000 capital expenditure. The expenditure can be depreciated in a straight line over 20 years. What is the present value of

You just made a $400,000 capital expenditure. The expenditure can be depreciated in a straight line over 20 years. What is the present value of the depreciation tax shield if the discount rate is 5% and your tax rate is 25%? Group of answer choices

$62,300 $249,200 $100,000 $78,600

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