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Your firm needs a computerized machine tool lathe which costs $41,000 and requires $11,100 in maintenance for each year of its 3-year life. After three

image text in transcribedYour firm needs a computerized machine tool lathe which costs $41,000 and requires $11,100 in maintenance for each year of its 3-year life. After three years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 39 percent and a discount rate of 11 percent. Calculate the depreciation tax shield for this project in year 3. (Round your answer to 2 decimal places.)

MACRS Depreciation Year 15 5.00% 9.50 8.55 7.70 6.93 6.23 5.90 0.00 4.46 0.00 5.90 5.91 5.90 5.91 5.90 0.00 5.91 5.90 20 3.750% 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3 33.33% 44.45 14.81 7.41 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Normal Recovery Period 5 7 10 20.00% 14.29% 10.00% 32.00 24.49 18.00 19.20 17.49 14.40 11.52 12.49 11.52 11.52 8.93 9.22 5.76 8.92 737 0.00 8.93 6.55 6.55 0.00 6.56 0.00 0.00 655 0.00 0.00 3.28 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0 00 0.00 0.00 000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 000 0.00 0.00 000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 000 0.00 0.00 000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 000 0.00 0.00 000 0.00 0.00 000 0.00 0.00 0.00 5.91 2.95 0.00 0.00 0.00 0.00 Residential 27.5 3.485% 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 1.970 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Real Estate Nonresidential 31.5 39 3.042% 2.461% 3.175 2.564 3.175 2.564 3.175 2.564 3.175 2.564 3.175 2.564 3.175 2.564 3.175 2.564 3.174 2.564 3.175 2.564 3.174 2.564 3.175 2.564 3.174 2.564 3.175 2.564 3.174 2.564 3.175 2.564 3.174 2.564 3.175 2.564 3.174 2.564 3.175 2.564 3.174 2.564 3.175 2.564 3.174 2.564 3.175 2.564 3.174 2.564 3.175 2.564 3.174 2.564 3.175 2.564 3.174 2.564 3.175 2.564 3.174 2.564 1.720 2.564 0.00 2.564 0.00 2.564 0.00 2.564 0.00 2.564 0.00 2.564 0.00 2.564 2.564 0.00 0.107 0.00 0.000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

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