Crane company is considering replacing an old asset with a new asset thay cost 400000 and is anticipate to have a salvage value of 30000 at the end of 4 years. The new asset qualifies as 3 years property under the macrs tax team. Although the new asset will continue to generate the same operation revenue as ghe old asset of 200000 per year, it will yield the following pretax saving in operating cost : 120000 in each of the first three heard and 90000 in the fourth year. The old asset, which originally cost 300000 and has accumulated depreciation of 250000, can be sold new for 30000. Crane is subject to a 40% tax rage for both ordinary income and capital gains, and has 14% after tax cost of capital. The team percent are as follow: First year : 33% 2year: 45% 3year: 15% 4year: 7%

What is the present value of the depreciation tax shield foe the MARCUS depreciation of carne' new asset?

A. 115206 B. 124548 C.186821 D. 311369