Campus Shadow is considering the addition of a washer system that will cut annual costs by $12,000. The system will cost $45,000 to purchase and install and is expected to have a 5-year life and will be depreciated to zero using straight-line depreciation. What is the annual net income for this project if the tax rate is 30%?

Multiple Choice

$2,100

$2,450

$3,000

$2,700

$2,300