James company put up 200000 for a project that will return

Reference no: EM13567589

James Company put up $200,000 for a project that will return $50,000 each year for four years. $120,000 is for equipment that will be depreciated, and $80,000 is for working capital like cash that will be returned at the end of the four years. The tax rate is 30%, and the discount rate s 10 percent. What is the present value of the depreciation tax shield?

Reference no: EM13567589

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