Alt's is considering a four-year project to improve its production efficiency. Buying a new machine press for $940,000 is estimated to result in $380,000 in annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $160,000. The press also requires an initial investment in spare parts inventory of $40,000, which will be recapped at the end of the project. The shops tax rate is 35 percent and its discount rate is 9 percent. What is the aftertax salvage value of the press at the end of the project?

YEAR	5-year MACRS Recovery Rate
1	20%
2	32%
3	19.2%
4	11.52%
5	11.52%
6	5.76%

Question 9 options:

	$162,432
	$160,851
	$180,480
	$160,000
	$108,288