A special tool for the manufacture of finished plastic products (MACRS-GDS 3 year property) costs $116,000 and has a planned salvage value of $17,000 after a useful life of 4 years. The tool generates a net savings of $34,000 per year. The total effective corporate tax rate is 27 percent. After three years, plans changed and the company sold the machine at the end of the year for $25,000. A partial view of the analysis is shown below. What is D, the CFAT of year 2? $(116,000) $ 34,000 $ 38,663 $ (4,663) $ (1,259) $ 35,259 Year CFBT Depr. TI Tax CFAT PW of CFAT 0 $ (116,000) F 1 D G 2 3 $ 59,000 A B C E H $ 34,000 $51,562 $(17,562) $ (4,742) Where CFBT Cash Flow Before Tax; Depr Depreciation; TI Taxable Income; Tax Tax; CFAT = Cash Flow After Tax; PWofCFAT Present Worth of Cash Flow After Tax. Your Answer: Answer