What amount should be used as annual depreciation tax shield

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Question 1: A two-year project has sales of $582,960, cash costs of $411,015, and depreciation expense of $68,109. The tax rate is 24 % and the discount rate is 12 %. What amount should be used as the annual depreciation tax shield when computing the project's operating cash flow?

A) $47,213.34

B) $23,606.67

C) $46,676.30

D) $16,346.16

E) $26,210.01

Reference no: EM132553611

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