You Are Considering Adding a Microbrewery on to One of Your

question 26

Multiple Choice

You are considering adding a microbrewery on to one of your firm's existing restaurants.This will entail an investment of $40,000 in new equipment.This equipment will be depreciated straight line over five years.If your firm's marginal corporate tax rate is 35%,then what is the value of the microbrewery's depreciation tax shield in the first year of operation?

• A)$2800
• B)$14,000
• C)$5200
• D)$26,000

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Definitions:

Biological Factors

Aspects of biological systems, including genetic, neurochemical, and physical conditions, that affect behaviors, health, and development.

Early Socialization

The process through which young individuals learn and adopt the norms, values, behaviors, and social skills appropriate to their society.

Information Processing Perspective

A psychological approach examining how humans encode, process, store, and retrieve information.

Computer Models

Simulations on computers used to predict or analyze the behavior of complex systems.