The Sisyphean Company is considering a new project that will have an annual depreciation expense of $3.6 million. If Sisyphean's marginal corporate tax rate is 35% and its average corporate tax rate is 30%,
then what is the value of the depreciation tax shield on the company's new project?
A) $1,080,000
B) $1,260,000
C) $1,890,000
D) $1,134,000
Answer: B
Business
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