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Problem 12-7 Depreciation Tax Shield (LG12-4) Your firm needs a computerized machine tool lathe which costs $57,000 and requires $12,700 in maintenance for each year

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Problem 12-7 Depreciation Tax Shield (LG12-4) Your firm needs a computerized machine tool lathe which costs $57,000 and requires $12,700 in maintenance for each year of its 3-year life. After three years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 34 percent and a discount rate of 11 percent. Calculate the depreciation tax shield for this project in year 3. (Round your answer to 2 decimal places.) Depreciation tax shield

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