jonroberts7810 jonroberts7810

03-06-2023
Business

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Jake is considering adding a new product line that is expected to increase annual sales by $486,000 and cash expenses by $318,000. The initial investment will require $310,000 in fixed assets that will be depreciated using the straight-line method to a zero book value over the 5-year life of the project. The company has a marginal tax rate of 26%. How much tax per year is saved because of the depreciation expense?
Answer the questisn according to the following format: integer. For example, if the Company saves 3,280.716 in taxes, round it to 3,281.
Precision will be enforced to earn points.

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