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?

a $3,660,561

b $2,613,600

c $4,259,439

d $3,843,589

e $3,477,533