Your firm needs a machine which costs $290,000, and requires $44,000 in maintenance for each year of its 5 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 5-year class life category. Assume a tax rate of 30% and a discount rate of 12%. What is the depreciation tax shield for this project in year 5?
A) $38,976
B) $55,680
C) $6,681.60
D) $16,704.00