Multiple Choice
A firm plans to purchase a $50,000 asset that will be depreciated straight-line over a 5-year life to a zero salvage value.What is the present value of the resulting depreciation tax shield if the tax rate is 35% and the discount rate is 10%?
A) $10,866.67
B) $13,267.75
C) $17,500.00
D) $37,908.18
Correct Answer:
Verified
Correct Answer:
Verified
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