A firm is evaluating project that requires equipment that costs $725,000. Installation costs are $225,000. The equipment can be salvaged for $115,000. at the end of three years. The firm's corporate tax rate is 25%. What would be the firm's depreciation expense in year three? The equipment falls under the MACRS three-year class.

MACRS Three-Year Class: 1= 33.33%, 2=44.45%, 3=14.81%, 4=7.41%;