Use the information for the question(s) below.
Shepard Industries is evaluating a proposal to expand its current distribution facilities. Management has projected the project will produce the following cash flows for the first two years (in millions).

-The depreciation tax shield for Shepard Industries project in year two is closest to:
A) $84
B) $196
C) $72
D) $96

Question

Use the information for the question(s) below.
Shepard Industries is evaluating a proposal to expand its current distribution facilities. Management has projected the project will produce the following cash flows for the first two years (in millions).
 
-The depreciation tax shield for Shepard Industries project in year two is closest to:
A) $84 
B) $196 
C) $72 
D) $96

Quizplus · Accepted Answer

A) $280 × .30 = $84

Use the Information for the Question(s) Below