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A project will increase sales by R140 000 and cash expenses by R95 000. The proj...
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A project will increase sales by R140 000 and cash expenses by R95 000. The project will cost R100 000 and be depreciated using the straight-line method to a zero book value over the 4-year life of the project. The company has a marginal tax rate of 34%. What is the value of the depreciation tax shield? Hint: Calculate depreciation first and multiply your answer by...
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