Question: your firm needs a computerized machine tool lathe which costs $41,000 and requires $11,100 in maintenance for each year of its 3-year life. After three

your firm needs a computerized machine tool lathe which costs $41,000 and requires $11,100 in maintenance for each year of its 3-year life. After three years, this machine will be replaced. The machine falls into the mACRS 3-year class life category, and neither bonus depreciation nor section 179 expensing can be used. Assume a tax rate of 21 percent and a discount rate of 11 percent.

Calculate the depreciation tax shield for this project in year 3. (Round your answer to 2 decimal places)

Depreciation tax shield

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