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 $13,860,000 and will be sold for $3,080,000 at the end of the project.

Required:

If the tax rate is 35 percent, what is the aftertax salvage value of the asset?

rev: 09_18_2012

$2,840,253

$2,002,000

$3,319,747

$2,982,265

$2,698,240