An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,020,000 and will be sold for $1,220,000 at the end of the project. If the tax rate is 35 percent,
Required:
Question: What is the aftertax salvage value of the asset?
Note: Please describe comprehensively and provide step by step solution.