An asset used in a $4-$year project falls in the $5-$year MACRS class for tax purposes. The

asset has an acquisition cost of $$8,700,000$ and will be sold for $$2,280,000$ at the end of

the project. If the tax rate is $21$ percent, what is the aftertax salvage value of the

asset? $($MACRS schedule$)($Do not round intermediate calculations and round your

answer to the nearest whole number, e$.$g$.,32.)$

Aftertax salvage value

Table $6\mathrm{.}3$ Depreciation under Modified Accelerated Cost Recovery System $($MACRS$)$

Year Recovery Period Class

$3$ Years $5$ Years $7$ Years $10$ Years $15$ Years $20$ Years

$1\mathrm{.}3333\mathrm{.}2000\mathrm{.}1429\mathrm{.}1000\mathrm{.}0500\mathrm{.}03750$

$2\mathrm{.}4445\mathrm{.}3200\mathrm{.}2449\mathrm{.}1800\mathrm{.}0950\mathrm{.}07219$

$3\mathrm{.}1481\mathrm{.}1920\mathrm{.}1749\mathrm{.}1440\mathrm{.}0855\mathrm{.}06677$

$4\mathrm{.}0741\mathrm{.}1152\mathrm{.}1249\mathrm{.}1152\mathrm{.}0770\mathrm{.}06177$

$5\mathrm{.}1152\mathrm{.}0893\mathrm{.}0922\mathrm{.}0693\mathrm{.}05713$

$6\mathrm{.}0576\mathrm{.}0892\mathrm{.}0737\mathrm{.}0623\mathrm{.}05285$

$7\mathrm{.}0893\mathrm{.}0655\mathrm{.}0590\mathrm{.}04888$

$8\mathrm{.}0446\mathrm{.}0655\mathrm{.}0590\mathrm{.}04522$

$9\mathrm{.}0656\mathrm{.}0591\mathrm{.}04462$

$10\mathrm{.}0655\mathrm{.}0590\mathrm{.}04461$

$11\mathrm{.}0328\mathrm{.}0591\mathrm{.}04462$

$12\mathrm{.}0590\mathrm{.}04461$

$13\mathrm{.}0591\mathrm{.}04462$

$14\mathrm{.}0590\mathrm{.}04461$

$15\mathrm{.}0591\mathrm{.}04462$

$16\mathrm{.}0295\mathrm{.}04461$

$17\mathrm{.}04462$

$18\mathrm{.}04461$

$19\mathrm{.}04462$

$20\mathrm{.}04461$

$21\mathrm{.}02231$Depreciation is expressed as a percentage of the asset$$s initial cost. These schedules are based on IRS Publication $946,$ entitled How to Depreciate Property. Details of depreciation are presented later in the chapter. Five$-$year depreciation actually carries over six years because the IRS assumes the purchase is made midyear.