Keyser Mining is considering a project that will require the purchase of

$$875,000$ in new equipment. The equipment will be depreciated straight$-$line to

a zero book value over the $7-$year life of the project. The equipment can be

scraped at the end of the project for $5$ percent of its original cost. Annual sales

from this project are estimated at $$420,000.$ Net working capital equal to $20$

percent of sales will be required to support the project. All of the net working

capital will be recouped. The required return is $16$ percent and the tax rate is $34$

percent. What is the value of the depreciation tax shield in year $4$ of the project?