Your firm is evaluating a project that will run for the next five years, using straight-line depreciation (MACRS not allowed for this one). You have been provided with an estimate of $260,000 in annual changes to EBITDA and an $80,000 annual increase in taxes that would occur if this project were undertaken. Your firm's tax rate is 40%. Your best estimate of the net change to annual depreciation and amortization expense that would occur if you execute the project is...
$88,000
$80,000
$60,000
$40,000
$32,000
$24,000
None of the above (or the answer cannot be determined with the information provided)