What is the depreciation tax shield for this project in year

Assignment Help Financial Management

Reference no: EM131524243

Your firm purchases a business copier that costs $14,000 and requires $3,000 in maintenance for each year of its four-year life. After four years, the copier will be replaced. The copier falls into the MACRS three-year class life category. Use Table 12.8 on page 415 in your textbook for DDB depreciation. Assuming a tax rate of 32 percent, what's the depreciation tax shield for this project in year 4?

A. $421.45

B. $541.24

C. $331.97

D. $521.54

Reference no: EM131524243

Questions Cloud

What option strategies can be used to lock in exchange rate : What option strategies can be used to lock in an exchange rate between $0.7 USD/CAD and $0.8 USD/CAD?

Compare the normal distribution to empirical distribution : The normal distribution is often used with measurement variables such as height and weight. Compare the normal distribution to the empirical distribution.

Describe how you would implement the recommendations : Describe how you would implement the recommendations developed in the case study. Propose changes to the supplier contract in order for the supply chain.

Do you agree that consumerism is a religion in our society : Do you agree that consumerism is a religion in our society? Do you think it is dangerous if it is a sort of religion? Please explain your responses.

What is the depreciation tax shield for this project in year : Assuming a tax rate of 32 percent, what's the depreciation tax shield for this project in year 4?

How hotels perform in terms of sustainable tourism concepts : Compare and contrast how two hotels perform in terms of sustainable tourism concepts. Do the people of the blue mountains really care?

Create value for consumers and investors : create value for consumers, investors, and other stakeholders, such as the community in which the firm operates within its value chain.

Considering new three-year expansion project : Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.47 million.

Example of possible decision supported by hiring system : In the Information Systems course module (included in the Week 4 Learning Resources), you were introduced to the information requirements.

User Account

All Pages