The companys tax rate is 30 and its discount rate is 10

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A company anticipates a depreciation deduction of $10,000 in year 2 of a project. The company"s tax rate is 30% and its discount rate is 10%. The present value of the depreciation tax shield resulting from this deduction is closest to:

A) $3,000

B) $2,479

C) $5,785

D) $7,000

Reference no: EM13567194

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