GUW, Inc. is considering purchasing equipment in order to remove salt from a tract of land that it owns. Studies have shown that there is 1,450,000 tons of salt in this land, and GUW estimates they can extract 100,000; 130,000; and 170,000 tons in the first three years, respectively, and them the remaining 1,050,000 tons can be extracted evenly over the next seven years (i.e., extract 150,000 tons a year for the final seven years). The expected contribution margin that GUW, Inc. can get from the salt is $5 per ton. The company will need to purchase equipment costing $800,000 in order to remove the salt from the land. The equipment is expected to have a salvage value of $40,000 in ten years. Assume GUW, Inc. has a 30% income tax rate and requires a 14% after-tax return on all investment projects. Also, for income tax purposes, the equipment will be classified in the MACRS 5-year class life and will be depreciated using the optional straight-Line method. Calculate the total (for all years combined) present value of the tax savings due to the depreciation tax shield. To answer this question use the present value table factors given below. No credit will be awarded for this question using a means other than the table factors given below to answer this question. Factors from the present value of a Lump sum table for: i = 14% n = 1 0.878 n = 2 0.769 n = 3 @.675 @.592 n = 7 n = 5 @.519 n = 10 0.270 8.456 e.400