Your firm needs a machine which costs $170,000, and requires $32,000 in maintenance for each year of its 5 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 5-year class life category. Assume a tax rate of 30% and a discount rate of 16%. What is the depreciation tax shield for this project in year 5?

$22,848

$32,640

$5,222.40

$9,792.00