The Sisyphean Company Is Considering a New Project That Will

question 29

Multiple Choice

The Sisyphean Company is considering a new project that will have an annual depreciation expense of $2.5 million.If Sisyphean's marginal corporate tax rate is 40% and their average corporate tax rate is 30%,then what is the value of the depreciation tax shield on their new project?

• A)$750,000
• B)$1,000,000
• C)$1,500,000
• D)$1,750,000