You are analyzing the prospects of installing cost saving machinery. You have the following information:

• Every year the machine generates costs savings (before taxes) of an amount $60,000.
• The cost of the machinery is 160,000.
• The machinery will be depreciated "straight line" for tax purposes over 5 years. That is the depreciation for tax purposes per year will be the price of the machinery divided by 5.
• The machinery will occupy space that would otherwise have been rented for $10,000 a year (before taxes are deducted).
• The tax rate is 36%.

What will be the increase in taxes per year from installing the machinery? (Your answer should be a positive number.)