The Sisyphean Company Is Considering a New Project That Will

question 2

Multiple Choice

The Sisyphean Company is considering a new project that will have an annual depreciation expense of $3.6 million. If Sisyphean's marginal corporate tax rate is 35% and its average corporate tax rate is 30%, then what is the value of the depreciation tax shield on the company's new project?

• A) $1,080,000
• B) $1,260,000
• C) $1,890,000
• D) $1,134,000

---

Definitions:

Sudden Infant Death Syndrome (SIDS)

The sudden, unexplained death of a baby younger than one year of age, sometimes known as crib death.

Apgar Scores

A rapid assessment of a newborn's health, scoring breath, heart rate, muscle tone, responses to stimuli, and skin color immediately after birth.

Back to Sleep

A campaign promoting the practice of placing babies on their backs to sleep to reduce the risk of Sudden Infant Death Syndrome (SIDS).