Depreciation Tax Shield Barrick Company has a payback goal of 3 years on new equipment acquisitions. A new sorter is being evaluated that costs $450,000 and has a 5-year life. Straight-line depreciation will be used; no salvage is anticipated. Barrick is subject to a 40% income tax rate. How much reduction in annual cash operating costs must the new equipment generate in order to meet the company's payback goal? Show how you made your calculation