Schroeder Electronics is considering a project which will require the purchase of $5.68 million in new equipment that will be depreciated straight-line to a zero book value over the 5-year life of the project. Schroeder desires a 12 percent rate of return and the tax rate is 35 percent. What is the value of the depreciation tax shield in Year 5 of the project?

Select one:

a. $225,608.92

b. $228,406.12

c. $334,800.00

d. $397,600.00

e. $1,136,000.00