Keyser Mining is considering a project that will require the purchase of $98000

Keyser Mining is considering a project that will require the purchase of $980000 in
new equipment. The equipment will be depreciated straight-line to a zero book value over the 7-year life of the project. The equipment can be scraped at
the end of the project for 5 percent of its original cost. Annual sales from this project are estimated at $420000. Net working capital equal to 20
percent of sales will be required to support the project. All of the net working capital will be recouped. The required return is 16 percent and the tax
rate is 35 percent. What is the value of the depreciation tax shield in year 4 of the project? Answer $71400 $76500 $52200 $68600 $49000