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Part $1$

You are considering adding a microbrewery on to one of your$$ firm's existing restaurants. This will entail an investment of$$ $$40,000$ in new equipment. This equipment will be depreciated straight line over five years. If your$$ firm's marginal corporate tax rate is$21\%,$ then what is the value of the$$ microbrewery's depreciation tax shield in the first year of$$ operation?

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Part $1$

A$.$

$$$$1680$

B$.$

$$$$14,000$

C$.$

$$$$5200$

D$.$

$$$$26,000$