11)Marshall-Miller & Company is considering the purchase of a new machine for $50,000, installed. The machine has a tax life of 5 years, and it can be depreciated according to the depreciation rates below. The firm expects to operate the machine for 4 years and then to sell it for $6,500. If the marginal tax rate is 40%, what will the after-tax salvage value be when the machine is sold at the end of Year 4?

Year

Depreciation Rate

1

0.20

2

0.32

3

0.19

4

0.12

5

0.11

6

0.06

a.

$8,468

b.

$5,986

c.

$6,424

d.

$7,300

e.

$7,884