Question: Question 1 1 A project will increase sales by $ 2 8 0 , 0 0 0 and cash expenses by 1 0 6 ,

Question 11
A project will increase sales by $280,000 and cash expenses by 106,000. The project will
cost $280,000 and 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 34%. What is the
value of the depreciation tax shield?
$15,400
$16,800
$17,460
$21,740
$23,800
Question 11 A project will increase sales by $280,000 and cash

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