Question: The Lumber Yard is considering adding a new product line that is expected to increase annual sales by $312,000 and expenses by $212,000. The project

The Lumber Yard is considering adding a new product line that is expected to increase annual sales by $312,000 and expenses by $212,000. The project will require $121,000 in fixed assets that will be depreciated using the straight-line method to a zero book value over the 9-year life of the project. The company has a marginal tax rate of 23 percent. What is the depreciation tax shield? Multiple Choice $15,528 $3,092 57973 $15,528 $3,092 $7,973 $8,127 $23,000

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