A project will increase annual sales by $183,000 and cash expenses by $99,000 for four years. The
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A project will increase annual sales by $183,000 and cash expenses by $99,000 for four years. The project has an initial cost of $115,000 for equipment that will be depreciated using MACRS depreciation. The applicable MACRS table values are .1429, 2449, 1749, and 1249 for Years 1 to 4, respectively. The company has a marginal tax rate of 35 percent. What is the depreciation tax shield for Year 3?
$11,774.27,
$6,065.53,
$3,925.59,
$4,955.77,
$8,288.16.
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