Calculate the amount to be received at the end of year 1 that is equivalent to $150 at the end of year 1, $450 at the end of year 2, and $300 at the end of year 3, given a discount rate of 10%

A) $807
B) $817
C) $887
D) $975
E) $1,331

A

Business

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Indicate whether the statement is true or false

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The Sisyphean Company is considering a new project that will have an annual depreciation expense of $2.5 million. If Sisyphean's marginal corporate tax rate is 40% and their average corporate tax rate is 30%, then what is the value of the depreciation tax shield on their new project?

A) $750,000 B) $1,000,000 C) $1,500,000 D) $1,750,000

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