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Your firm needs a machine which costs $220,000, and requires $37,000 in maintenance for each year of its 3 year life. After 3 years, this

Your firm needs a machine which costs $220,000, and requires $37,000 in maintenance for each year of its 3 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 35% and a discount rate of 16%. What is the depreciation tax shield for this project in year 3?

A $5,213.12

B $11,403.70

c $32,582

D $21,178

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