A kitchen appliances manufacturing company is planning to buy a new production equipment for $1,500,000. This equipment will be depreciating according to the 3-year property class under MACRS (see the table - you can also click on it to view full screen in a new window). If the company sells this equipment in 3 years for $410,000, how much will it collect in after-tax sale proceeds (i.e., the after-tax salvage value)? The company faces a 29% tax rate.

Property Class Three-Year Five-Year 33.33% 20.00% 44.44 32.00 14.82 19.20 7.41 11.52 11.52 5.76 Year 1 2 3 4 5 6 7 8 2 Seven-Year 14.29% 24.49 17.49 12.49 8.93 8.93 8.93 4.45