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 $12,420,000 and will be sold for $2,760,000 at the end of the project.

If the tax rate is 23 percent, what is the aftertax salvage value of the asset?

Multiple Choice

• $2,618,820

• $2,125,200

• $2,901,180

• $2,749,762

• $2,487,879