Keene, Inc., is considering a new four-year expansion project that requires an initial fixed asset investment of $2.6 million. The fixed asset will be depreciated over its four-year tax life. The project is estimated to generate $2,400,000 in annual sales, with costs of $900,000. The tax rate is 36 percent. The project requires an initial investment in net working capital of $100,000 of which 90% will be recovered at the end of the project. The fixed asset will have a market value of $300,000 at the end of the project. The discount rate for the project is 16%.

What is the depreciation expense each year if the company decides to depreciate the asset as a three-year asset using MACRS?