Burry Inc Has Provided the Following Data to Be Used in in Evaluating

question 18

Multiple Choice

Burry Inc. has provided the following data to be used in evaluating a proposed investment project: For tax purposes, the entire initial investment without any reduction for salvage value will be depreciated over 5 years. The company uses a discount rate of 11%.
-By how much does the depreciation deduction reduce taxes each year in which the depreciation deduction is taken?

• A)$45,000
• B)$75,000
• C)$105,000
• D)$32,143