Company Investing $2.5 million on a machine which is expected to have a salvage value of 0 at the end of its 6 year life. -Company uses discount 10% rate to value all investments -Its corporate tax...

Company Investing $2.5 million on a machine which is expected to have a salvage value of 0 at the end of its 6 year life.

-Company uses discount 10% rate to value all investments

-Its corporate tax rate is 30%.

If the machine is depreciated via straight-line basis, calculate the present value of the depreciation tax shield