Question: Seeing Red has a new project that will require fixed assets of $921,000, which will be depreciated on a 5-year MACRS schedule. The annual depreciation

Seeing Red has a new project that will require fixed assets of $921,000, which will be depreciated on a 5-year MACRS schedule. The annual depreciation percentages are 20%, 32%, 19.2%, 11.52%, and 11.52%, respectively. The company has a tax rate of 40%. What is the depreciation tax shield for Year 3?

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