Question: he Lumber Yard is considering adding a new product line that is expected to increase annual sales by $357,000 and expenses by $248,000. The project

he Lumber Yard is considering adding a new product line that is expected to increase annual sales by $357,000 and expenses by $248,000. The project will require $157,000 in fixed assets that will be depreciated using the straight-line method to a zero book value over the 6-year life of the project. The company has a marginal tax rate of 35 percent. What is the depreciation tax shield?

Multiple Choice

$9,158

$20,825

$14,467

$17,008

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