Use the Information for the Question(s)below

question 60

Multiple Choice

Use the information for the question(s) below.
Epiphany Industries is considering a new capital budgeting project that will last for three years. Epiphany plans on using a cost of capital of 12% to evaluate this project. Based on extensive research, it has prepared the following incremental cash flow projects:

-A firm is considering investing in a new machine that will cost $600 000 and will be depreciated using the straight-line method over five years. If the firm's marginal tax rate is 30%, what is the annual depreciation tax shield of purchasing the machine?

• A)$36 000
• B)$120 000
• C)$234 000
• D)$107 692

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Something not asked for and often unwanted, typically referring to communications or goods.

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The condition of having paid work or being engaged in a profession or occupation.

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A communication strategy used to say no or decline a request in a polite and less direct manner.

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