Shepard Industries Is Evaluating a Proposal to Expand Its Current

question 45

Multiple Choice

Shepard Industries is evaluating a proposal to expand its current distribution facilities. Management has projected that the project will produce the following cash flows for the first two years (in millions of dollars) . The depreciation tax shield for Shepard Industries project in year 2 is closest to ________.

• A) $90 million
• B) $69 million
• C) $135 million
• D) $108 million

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