Handy Wrappers is considering investing in a piece of machinery which will cost $500,000. It will provide an additional $160,000 is additional sales each year and its annual operating expenses are expected to be $35,000. The machine will be depreciated on a straight-line basis over a 10 year life with no estimated salvage value. The company has a 40% tax rate and its required rate of return is 16%. How much is the annual depreciation tax shield?