Use the information for the question(s)below.
Shepard Industries is evaluating a proposal to expand its current distribution facilities. Management has projected the project will produce the following cash flows (in millions)for the first two years.

-The depreciation tax shield for the Shepard Industries project in year 2 is closest to:
A)$60
B)$96
C)$72
D)$84

Question

Use the information for the question(s)below.
Shepard Industries is evaluating a proposal to expand its current distribution facilities. Management has projected the project will produce the following cash flows (in millions)for the first two years.
 
-The depreciation tax shield for the Shepard Industries project in year 2 is closest to:
A)$60 
B)$96 
C)$72 
D)$84

Quizplus · Accepted Answer

The depreciation tax shield is calculated as the depreciation expense multiplied by the tax rate. If the depreciation expense for Shepard Industries in year 2 is not provided, we cannot calculate the exact number without additional information. However, given the options, the correct answer is chosen based on the context of the question.

Use the Information for the Question(s)below