A beverage bottling firm is considering a capital expenditure project that will involve purchasing and installing new equipment. The equipment cost will be $60,000, with an additional $3,000 for delivery, and installation is estimated to be $15,000. The equipment has an expected life of 10 years, and an estimated salvage value of $25,000. The firm has a 40% marginal tax rate and a 10% weighted average cost of capital (WACC). Calculate the annual change in depreciation for this project, assuming simplified straight line depreciation.

a, 7800 per year

b. 5300 per year

c. 9927.27 per year

d. 10920 per year

e. none of the above