Your firm needs a machine which costs $280,000, and requires $49,000 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 16%. What is the depreciation tax shield for this project in year 5?

$32,256

$25,482.24

$5,160.96

$6,773.76