Multiple Choice
The Sisyphean Company is considering a new project that will have an annual depreciation expense of $2.5 million.If Sisyphean's marginal corporate tax rate is 40% and their average corporate tax rate is 30%,then what is the value of the depreciation tax shield on their new project?
A) $750,000
B) $1,000,000
C) $1,500,000
D) $1,750,000
Correct Answer:
Verified
Correct Answer:
Verified
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