Wearout Corporation has a shoelace machine with an original cost of $100,000. Depreciation expense for the machine this year is 10% of original cost. The company's tax rate is 21%. What is the depreciation tax shield for this year for this machine? Group of answer choices $21,000 $10,000 $2,100 $7,900
Wearout Corporation has a shoelace machine with an original cost of $100,000. Depreciation expense for the machine this year is 10% of original cost. The company's tax rate is 21%. What is the depreciation tax shield for this year for this machine? Group of answer choices $21,000 $10,000 $2,100 $7,900
Chapter10: Project Cash Flows And Risk
Section: Chapter Questions
Problem 4PROB
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Question
Wearout Corporation has a shoelace machine with an original cost of $100,000.
Group of answer choices
$21,000
$10,000
$2,100
$7,900
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