Multiple Choice
What is the present value at a 10% discount rate of the depreciation tax shield for a firm in the 35% tax bracket that purchases a $50,000 asset being depreciated straight-line over a 5-year life to a zero salvage value?
A) $10,866
B) $13,268
C) $17,500
D) $37,908
Correct Answer:
Verified
Correct Answer:
Verified
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