Peter Pontificator Is Proposing to Purchase a Paddle Machine, Which

Peter Pontificator is proposing to purchase a paddle machine, which will cost $1 million, last eight years and have a salvage value of 20%. Given a tax rate of 35%, and a cost of capital of 6%: What is the present value of the tax shield if straight-line depreciation is used?

A) $261,261
B) $271,679
C) $240,700
D) $217,343
E) None of the above