An asset used in a $4-$year project falls in the $5-$year MACRS class $($MACRS Table$)$ for tax purposes. The asset has an acquisition cost of $$17,820,000$ and will be sold for $$3,960,000$ at the end of the project.

Required:

If the tax rate is $34$ percent, what is the aftertax salvage value of the asset?

rev: $09\_18\_2012$

Multiple Choice

$$3,660,561$

$$2,613,600$

$$4,259,439$

$$3,843,589$

$$3,477,533$