The Lions Football Team has installed a new electronic scoreboard at its football stadium at a cost of $300,000. The scoreboard has an estimated 10-year life and a salvage value of $30,000. Using straight-line depreciation, determine the present value of its tax savings from the depreciation tax shield. Assume an income tax rate of 30% and a discount rate of 8%.

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The Answer of The Lions Football Team has installed a new electronic scoreboard at its football stadium at a cost of $300,000. The scoreboard has an estimated 10-year life and a salvage value of $30,000. Using straight-line depreciation, determine the present value of its tax savings from the depreciation tax shield. Assume an income tax rate of 30% and a discount rate of 8%.

The Lions Football Team Has Installed a New Electronic Scoreboard