Carlos Bakery is looking to purchase a new oven. Capital and installation costs are $740,000. Carlos himself wishes to depreciate this expense in a straight-line fashion over 4 years but you suggest that using a 4- year MACRS schedule (33.33% in year 1, 44.45% in year 2, 14.81% in year 3, and 7.41% in year 4). If the bakery's marginal tax rate is 20%, what is the NPV of choosing the MACRS schedule over a straight-line schedule if the discount rate is 8%?

$7,756

$9,308

O $6,464

O $5,386

$4,489