Question: Question 4 1 pts Your firm needs a computerized machine tool lathe which costs $50,000, and requires $12,000 in maintenance for each year of its

 Question 4 1 pts Your firm needs a computerized machine tool

Question 4 1 pts Your firm needs a computerized machine tool lathe which costs $50,000, and requires $12,000 in maintenance for each year of its 3 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 35% and a discount rate of 12%. What is the depreciation tax shield for this project in year 3? Select the range that includes the correct solution. See MACRS table below. Year Depreciation % 1 33% 2 45% 3 15% 4 7% O Less than $2,500 Greater than or equal to $2,500 but less than $2,600 O Greater than or equal to $2,600 but less than $2,700 Greater than or equal to $2,700 but less than $2,800 O Greater than or equal to $2,800

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