Shepard Industries Is Evaluating a Proposal to Expand Its Current

Multiple Choice

Shepard Industries is evaluating a proposal to expand its current distribution facilities. Management has projected that the project will produce the following cash flows for the first two years (in millions of dollars) . The depreciation tax shield for Shepard Industries project in year 2 is closest to ________.

A) $90 million
B) $69 million
C) $135 million
D) $108 million