Question: jake is considering adding a new product line that is expected to increase annual sales by 479,000 and cash expenses by 318,000. the initial investment
jake is considering adding a new product line that is expected to increase annual sales by 479,000 and cash expenses by 318,000. the initial investment will require 305,000 in fixed assets that will be depreciated using the straight line method to a zero book value over the 4-year life of the project. the company has a marginal tax rate of 15%. how much tax per year is saved because of the depreciation expense
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