A company is considering investing in a project that has a 10 year life. To pursue the project, the company must purchase a new piece of equipment for $3,890,000 that has a life of 16 years. The equipment is depreciated straight line to zero. The machine is sold for $200,000 at the end of the projects life, and the company has a tax rate of 25%. What is the after tax salvage value of the equipment?

Group of answer choices

$200,000

$514,687.50

-$1,258,750

$314,687.50