A firm invests in a 7-year project that requires the purchase of a $135,000 machine tool. This will be depreciated using 5-year MACRS and will have no salvage value. When will this equipment affect the project's tax payments?

Select one:

A. Every year for 7 years

B. Every year for 5 years

C. At the time of purchase only

D. Every year for 6 years