Use the Information for the Question(s) Below -The Depreciation Tax Shield for Shepard Industries Project in Year

question 21

Multiple Choice

Use the information for the question(s) below.
Shepard Industries is evaluating a proposal to expand its current distribution facilities. Management has projected the project will produce the following cash flows for the first two years (in millions) .
$\begin{array} { l c c } \hline \text { Year } & \mathbf { 1 } & \mathbf { 2 } \\\hline \text { Revenues } & 1200 & 1400 \\\hline \text { Operating expense } & 450 & 525 \\\hline \text { Depreciation } & 240 & 280 \\\hline \text { Increase in working capital } & 60 & 70 \\\hline \text { Capital expenditures } & 300 & 350 \\\hline \text { Marginal corporate tax rate } & 30 \% & 30 \% \\\hline\end{array}$
-The depreciation tax shield for Shepard Industries project in year 2 is closest to:

• A) $96
• B) $84
• C) $196
• D) $72

Distinguish between different types of energy and their quality.

Identify organic and inorganic compounds and their characteristics.

Understand the law of conservation of matter and its implications.

Differentiate between potential and kinetic energy.

---

Definitions:

Circadian Rhythms

Biological processes that display an endogenous, entrainable oscillation of about 24 hours, regulating various physiological processes including the sleep-wake cycle.

PER Protein

A core component of the circadian clock in organisms, involved in maintaining the internal biological rhythm in sync with environmental cycles.

Marine Iguana

A species of iguana found only in the Galapagos Islands, notable for its unique adaptation to a marine lifestyle, including swimming and feeding on algae.

Foraging Start Times

The specific times at which animals begin their activity to search for food, influenced by environmental and internal biological factors.