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Your company is considering a new project that will require $250,000 of new equipment at the start of the project. The equipment will have a
Your company is considering a new project that will require $250,000 of new equipment at the start of the project. The equipment will have a depreciable life of eight years and will be depreciated to a book value of $10,000 using straight-line depreciation The cost of capital is 12 percent, and the firm's tax rate is 21 percent Estimate the present value of the tax benefits from depreciation Multiple Choice $63,618 $117733 $86.997 Multiple Choice O $63,618 $117.733 $86,997 $31,296
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