Question: ABC, Inc. is evaluating a project that will increase their annual sales by an estimates $ 3 7 7 , 0 0 0 . Their

ABC, Inc. is evaluating a project that will increase their annual sales by an estimates $377,000. Their expenses will increase by $232,000. This project will require an upfront investment in fixed assets in the amount of $141,000. This fixed will be depreciated using the straight-line method to a zero book value over the 6-year life of the project. ABC, Inc. has a margin tax rate of 34%. What is the depreciation tax shield?
ABC, Inc. is evaluating a project that will increase their annual

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