Problem:
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $8,300,000 and will be sold for $1,870,000 at the end of the project.
Question: If the tax rate is 34 percent, what is the after-tax salvage value of the asset?
Note: Show supporting computations in good form.