The Lumber Yard is considering adding a new product line that is expected to increase annual sales by $350,000 and cash expenses by $199,000. The initial investment will require $105,000 in fixed assets that will be depreciated using the straight-line method to a zero book value over the 5-year life of the project. The company has a marginal tax rate of 25 percent. What is the annual value of the depreciation tax shield?

Depreciation Expense:

Depreciation Tax Shield: