Your firm needs a machine which costs $260,000, and requires $47,000 in maintenance for each year of its 5 year life. After 5 years, this machine will be replaced. The machine falls into the MACRS 5-year class life category. Assume a tax rate of 21% and a discount rate of 14%. What is the depreciation tax shield for this project in year 5?

Multiple Choice

A) $29,952

B) $6,289.92

C) $4,193.28

D) $23,662.08