To complete the project the firm will need to make an investment $($equipments$)$ of $$9,000$ in year $0($year$-$end$),$ $$4,000$ in year $2($year$-$end$),$ $$2000$ in year $3($year$-$end$).$ This specialized equipment can be depreciated using the straight$-$line method. The project is expected to generate revenue from year $1$ through year $7.$ All equipments are expected to be abandoned at the end of the project. By environmental law, the company is required to remove the project after it is abandoned. The cost of removal is $$1,000.$ The salvage value is expected to be zero. We assume All project revenues and expenses are incurred in the end of a year. Your sales and marketing team tell you that they estimate sales of $1,500$ units in year $1,$ rising by roughly $50\%$ per year through year $5,$ then declining by $50\%$ in year $6$ and $70\%$ in year $7.$ They assume the product is dead at that point, with $0$ units demanded$/$sold in year $8.$ The firm's nominal cost of debt is $5\%$ and remain constant, while the cost of equity is forecasted to be $6\%$ in year $1$ and increase by $10\%$ each year. The tax rate is estimated to be a level $20\%.$ The cost of capital is calculated as the weighted average cost of capital $($equity and debt$).60\%$ of the firm's capital comes from equity and $40\%$ comes from bank loans. Sales revenue per unit is expected to be $$10$ from year $1$ to year $7.$ Variable cost per unit is estimated at $$5$ from in $1$ and increases by $10\%$ through year $7.$ Cash fixed costs will be $$7,000$ in year $1$ and declines by $5\%$ through year $7.$

QUESTION $4$

$(4)$ What is the annual depreciation in year $6?($rounded to the $2$ nd decimal place$)$