Question: The Lumber Yard is considering adding a new product line that is expected to increase annual sales by $397.000 and expenses by $280,000. The project

The Lumber Yard is considering adding a new product line that is expected to increase annual sales by $397.000 and expenses by $280,000. The project will require $189,000 in fixed assets that will be depreciated using the straight-line method to a zero book value over! the 7-year life of the project. The company has a marginal tax rate of 35 percent. What is the depreciation tax shield? Multiple Choice 59,450 $16,333 S19,850 O $40,950 $20,475

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