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 (in millions)for the first two years.

-The depreciation tax shield for the Shepard Industries project in year 1 is closest to:
A)$96
B)$84
C)$60
D)$72

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 (in millions)for the first two years.
 
-The depreciation tax shield for the Shepard Industries project in year 1 is closest to:
A)$96 
B)$84 
C)$60 
D)$72

Quizplus · Accepted Answer

The depreciation tax shield is calculated as the depreciation expense multiplied by the tax rate. Without specific numbers for the depreciation expense or tax rate provided in the question, the correct answer cannot be determined based on the information given. However, based on the choices provided and assuming this is the correct answer given the context, the closest value for the depreciation tax shield for Shepard Industries in year 1 would be $60. This is a hypothetical scenario as the actual calculation requires specific financial figures.

Use the Information for the Question(s)below