A project will produce cash inflows of $$5,000$ each year for three years. It requires a new piece of equipment costing $$9,000$ that will have no value after the three years. Taxes are $40$ percent. The discount rate is $10$ percent.

There are two possible methods of taking depreciation: straight line or accelerated. The straight line depreciation will be $$3,000$ per year. The accelerated depreciation will be $$4,000$ the first year; $$3,000$ the second year; and $$2,000$ the third year.

What is the additional depreciation tax shield of using accelerated depreciation compared to straight$-$line depreciation? For this, I$\text{'}$m using Table $3-9$ on about page $102!$

Group of answer choices

$$0$

$$63$

$$2,984$

$$3,047$