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 $18,360,000 and will be sold for $4,080,000 at the end of the project.

Required:

If the tax rate is 32 percent, what is the aftertax salvage value of the asset?

rev: 09_18_2012

$3,789,635

$2,774,400

$4,370,365

$3,979,116

$3,600,153