Sunny Farms is considering investing in a chicken plucker machine that will cost $300,000. The investment will provide an additional $90,000 in sales annually. Sunny Farms annual cash operating expenses are expected to be $22,000. The machine will be depreciated on a straight-line basis over a 10-year life with a $12,000 estimated salvage value. The company has a 30% tax rate and its required rate of return is 10%. How much is the annual depreciation tax shield?

Group of answer choices

$30,000

$28,800

$9,600

$8,640