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 $12,240,000 and will be sold for $2,720,000 at the end of the project.

Required:

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

$2,526,423

$1,849,600

$2,913,577

$2,652,744

$2,400,102