Your firm needs a machine which costs $110,000, and requires $32,000 in maintenance for each year of its 10 year life. After 5 years, this machine will be replaced. The machine falls into the MACRS 10-year class life category. Assume a tax rate of 40% and a discount rate of 14%. What is the depreciation tax shield for this project in year 10?

$10,142

$4,056.80

$6,085.20

$1,419.88