Question: 8. The Lumber Yard is considering adding a new product line that is expected to increase annual sales by $307,000 and expenses by $208,000. The

8. The Lumber Yard is considering adding a new product line that is expected to increase annual sales by $307,000 and expenses by $208,000. The project will require $117,000 in fixed assets that will be depreciated using the straight-line method to a zero book value over the 8-year life of the project. The company has a marginal tax rate of 34 percent. What is the depreciation tax shield?

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