12.Your firm needs a machine which costs $220,000, and requires $37,000 in maintenance for each year of its 3 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 35% and a discount rate of 16%. What is the depreciation tax shield for this project in year 3?

$5,213.12

$21,178

$32,582

$11,403.70