What is the annual tax shield

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1. Your boss asked you to calculate the tax shield on the new fleet of tractors the company has purchased. The annual depreciation on the tractors is estimated to be 247,500 and the company's estimated tax rate is 35%. What is the annual tax shield?

2. Conan O'Brien signed a three year contract to host the Tonight Show. Although he will receive 130 million dollars over three years, the terms of the contracts are that he is to receive 10 million at the end of each of the next three years plus an additional 100 million at the end of the third year. Assuming an annual interest rate of 10%, what is the actual value of O'brien's contract in today's dollar?? (Hint thinks of two separate calculations)

Reference no: EM13793426

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