Shepard Industries is evaluating a proposal to expand its current distribution facilities Management has projected the project will produce the following cash flows for the first two years (in millions) Year 1 2 Revenues 1200 1400 Operating Expense 450 525 Depreciation 240 280 Increase in working capital 60 70 Capital expenditures 300 350 Marginal corporate tax rate 30 30 The depreciation tax shield for Shepard Industries project in year one is closest to

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Question: Shepard Industries is evaluating a proposal to expand its current distribution facilities. Management has projected the project will produce the following cash flows for the

Shepard Industries is evaluating a proposal to expand its current distribution facilities. Management has projected the project will produce the following cash flows for the first two years (in millions).

Year	1	2
Revenues	1200	1400
Operating Expense	450	525
Depreciation	240	280
Increase in working capital	60	70
Capital expenditures	300	350
Marginal corporate tax rate	30%	30%

The depreciation tax shield for Shepard Industries project in year one is closest to:

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