Your firm needs a machine which costs 240000 and requires


Your firm needs a machine which costs $240,000, and requires $45,000 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 35% and a discount rate of 13%. What is the depreciation tax shield for this project in year 5?

$27,648

$17,971.20

$3,594.24

$9,676.80

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Financial Management: Your firm needs a machine which costs 240000 and requires
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