A company is now at the end of the final year of a project. The equipment originally cost $28,000, of which 75% has been depreciated. The firm can sell the used equipment today for $6,000, and its tax rate is 40%. What is the equipments after-tax salvage value for use in a capital budgeting analysis? Note that if the equipment's final market value is less than its book value, the firm will receive a tax credit as a result of the sale.

$5,632

$6,400

$7,232

$5,824

$6,848