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Question 8

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Use the table for the question(s) below. Use the table for the question(s) below. -The Sisyphean Corporation is considering a new project that will have an annual depreciation expense of $2.5 million. If Sisyphean's marginal corporate tax rate is 30%, what is the value of the depreciation tax shield on the company's new project? A) $1 500 000 B) $750 000 C) $1 000 000 D) $1 750 000
-The Sisyphean Corporation is considering a new project that will have an annual depreciation expense of $2.5 million. If Sisyphean's marginal corporate tax rate is 30%, what is the value of the depreciation tax shield on the company's new project?


A) $1 500 000
B) $750 000
C) $1 000 000
D) $1 750 000

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