Your company is considering a new project that will require $10,000 of new equipment at the start of the project The equipment will have a depreciable life of five years and will be depreciated to a book value of $3,000 using straight line depreciation The cost of capital is 9 percent, and the firm's tax rate is 34 percent Estimate the present value of the tax benefits from depreciation A $476 B $924 C $1,400 D $1,851 Which statement is true regarding cost cutting proposals A Cost cutting proposals main benefits are from changes in sales and changes in costs B Cost cutting proposals main benefits come only from changes in sales C Cost cutting proposals main benefits come only from changes in costs D Cost cutting proposals main benefits come from the change in sales due to the response from the cost cutting proposal

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Question: Your company is considering a new project that will require $10,000 of new equipment at the start of the project. The equipment will have a

Your company is considering a new project that will require $10,000 of new equipment at the start of the project. The equipment will have a depreciable life of five years and will be depreciated to a book value of $3,000 using straight-line depreciation. The cost of capital is 9 percent, and the firm's tax rate is 34 percent. Estimate the present value of the tax benefits from depreciation.

$476

$924

$1,400

$1,851

Which statement is true regarding cost-cutting proposals?

A.	Cost-cutting proposals main benefits are from changes in sales and changes in costs.

B.	Cost-cutting proposals main benefits come only from changes in sales.

C.	Cost-cutting proposals main benefits come only from changes in costs.

D.	Cost-cutting proposals main benefits come from the change in sales due to the response from the cost-cutting proposal.

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