The Sisyphean Company is considering a new project that will have an annual depreciation expense of $2.5 million. If Sisyphean's marginal corporate tax rate is 40% and their average corporate tax rate is 30%, then what is the value of the depreciation tax shield on their new project?
$750,000
$1,000,000
$1,500,000
$1,750,000
I do not know which tax to use to calculate the marginal or average tax.