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  3. suppose that sudbury mochanical drifters is propos

Suppose that Sudbury Mochanical Drifters is proposing to invest $10 milion in a new factory....

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Accounting

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Suppose that Sudbury Mochanical Drifters is proposing to invest $10 milion in a new factory. It can depreclate this investment straightline over 10 years. The tax rate is 40%, and the discount rate is 10%. a. What is the present value of Sudburys depreciotion tax shields? b. What would be the present value of the tax shield if the government allowed Sudbury to write off the factory immediately? Complete this question by entering your answers in the tabs below. What is the present value of Sudbury's deprecietion tax shields? Note: fenter your answers in malions rounced to 1 decimal place. Suppose that Sudbury Mechanicat Drifters is proposing to invest 510 milion in a new factocy. if can depreciate this investenent straig ine ever 10 years. The tox rate is 40%, and the discount rate is 10% a. What is the present value of Sucbury's depreciation tax shields? b. What would be the present value of the tox shiekd if the govemment allowed suabury to write-orf the factocy immesately? Complete this question by entering your answers in the tabs belew. What would be the present value of the tax shield it the gevemment allowed scooury to wrin-ir the tactory immedately? Notel Enter your answer in meilions rounded to a decimal gace

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