What is the annual depreciation tax shield

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Question - Great India Manufacturing spent $15 million to purchase some equipment to be used in the manufacture of a computer devise. The firm expects to use the equipment for 5 years, and its marginal tax rate is 35%. The company plans to depreciate the equipment using straight line method to a zero-salvage value. What is the annual depreciation tax shield/savings?

Reference no: EM132903820

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