Question: The Lumber Yard is considering adding a new product line that is expected to increase annual sales by $ 3 8 2 , 0 0

The Lumber Yard is considering adding a new product line that is expected to increase annual sales by $382,000 and expenses by $268,000. The project will require $177,000 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 22 percent. What is the depreciation tax shield?
The Lumber Yard is considering adding a new product line that

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