Use the Information for the Question(s)below

Multiple Choice

Use the information for the question(s) below.
Shepard Industries is evaluating a proposal to expand its current distribution facilities. Management has projected the project will produce the following cash flows (in millions) for the first two years.

-The depreciation tax shield for the Shepard Industries project in year 1 is closest to:

A) $96
B) $84
C) $60
D) $72