The Sisyphean Company is considering a new project that will have an annual depreciation expense of $6 million. If Sisyp

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The Sisyphean Company is considering a new project that will
have an annual depreciation expense of $6 million. If Sisyphean's
marginal corporate tax rate is 35%, then what is the value of the
depreciation tax shield on the company's new project?
$1,200,000
$2,100,000
$1,800,000
$1,500,000
Cameron Industries is purchasing a new chemical vapor depositor
in order to make silicon chips. It will cost $3 million to buy the
machine and $30,000 to have it delivered and installed. Building a
clean room in the plant for the machine will cost an additional $2
million. The machine is expected to have a working life of six
years. If straight-line depreciation is used, what are the yearly
depreciation expenses in this case?
$658,000
$705,000
$505,000
$153,000
Ford has a beta of 1.3. Your estimate of the market risk premium
for Ford is 5%. The risk-free rate of return is 2.0%. Based on the
Capital Asset Pricing Model (CAPM), what is Ford's expected
return?
8.5%
9.6%
8.0%
9.2%