A new machine with a cost basis of $50,000 and falls in a MACRS 3 year class. It will save $0.50 per unit in cost, and the expectation is 50,000 units per year of production. How much will EBIT increase by in the first year?

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Table 13.1 MACRS Depreciation Schedule

Year		Class
	3 years	5 years	7 years	10 years
1	41.67%	25.00%	17.85%	12.50%
2	38.89%	30.00%	23.47%	17.50%
3	14.14%	18.00%	16.76%	14.00%
4	5.30%	11.37%	11.97%	11.20%
5		11.37%	8.87%	8.96%
6		4.26%	8.87%	7.17%
7			8.87%	6.55%
8			3.34%	6.55%
9				6.56%
10				6.55%
11				2.46%
Total	100.00%	100.00%	100.00%	100.00%