A 4-year project being considered by Metro Industries. The project requires the purchase of a depreciable asset that costs $1,200,000 on January 1. The asset is expected to have a $200,000 salvage value at the end of 4 years and qualifies as 3-year property under the Modified Accelerate Cost Recovery System (MACRS). Metro is subject to a 40% income tax rate and rounds all computations to the nearest dollar. The company uses the net present value method to analyze investments and will employ the following factors and rates. Period Present Value of $1 at 12% Present Value of $1 Annuity at 12% MACRS 1 0.89 0.89 33% 2 0.80 1.69 45% 0.71 2.40 15% 0.64 3.04 7% The discounted benefit of the depreciation deduction for the second year using MACRS depreciation on the new asset is: A S N 3 $216,000 $144,000 $0 O $172,800 O $259,200