Morgado Inc. has provided the following data to be used in evaluating a proposed investment project:
- Initial investment $290,000
- Annual cash receipts $94,000
- Life of the project 9 year
- Annual cash expenses $59,000
- Salvage value $30,000
The company's tax rate is 30%. For tax purposes, the entire initial investment will be depreciated over 7 years without any reduction for salvage value. The company uses a discount rate of 10%.When computing the net present value of the project, what is the after-tax cash flow from the salvage value in the final year?