An asset used in a 4-year project falls in the 5-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $17,100,000 and will be sold for $3,800,000 at the end of the project.
Required: If the tax rate is 33 percent, what is the aftertax salvage value of the asset
Which is the following answer?
$3,521,110
$2,546,000
$4,078,890
$3,697,166
$3,345,055