Cuda Marine Engines, Inc. must develop the relevant cash flows for a replacement capital investment proposal. The proposed asset costs $$50,000$ and has installation costs of $$3,000.$ The asset will be depreciated using a five$-$year recovery schedule. The existing equipment, which originally cost $$25,000$ and will be sold for $$10,000,$ has been depreciated using an MACRS five$-$year recovery schedule and three years of depreciation has already been taken. The new equipment is expected to result in incremental before$-$tax net profits of $$15,000$ per year. The firm has a $40$ percent tax rate.

The incremental depreciation expense for year $5$ is $\_\_\_\_\_\_\_\_.($See Table $11\mathrm{.}3)$

$$7,950$

$$6,360$

$$2,250$

$$5,110$