A construction company is performing a capital budgeting analysis on a potential $200,000 piece of equipment with a six-year life. This question asks you to determine the after-tax cash flows (ATCFs) associated with just the last year of the proposed projects life.

The following information is available:

The project is expected to generate annual pre-tax net cash flows of $60,000 for each year of its useful life.

For financial accounting purposes, the company will be depreciating the machine on a straight-line basis with $10,000 salvage value. For tax purposes, the company will be depreciating the machine using the IRS-provided tables with a zero salvage value (as prescribed in the tax code). The tables provide for a 5.76% depreciation rate in Year 6.

At the end of the 6^th year, the company anticipates being able to sell the machine for $10,000. Any taxable gain or loss on the disposal will affect the Year 6 after-tax cash flow.

Assume that the companys tax rate is 35%. Determine the Year 6 after-tax cash flow that would be included in a NPV, IRR, or MIRR analysis.