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 $12,600,000 and will be sold for $2,800,000 at the end of the project. Required: If the tax rate is 31 percent, what is the aftertax salvage value of the asset?

Year Property Class Three-Year Five-Year 20.00% 33.33% 44.45 32.00 14.81 19.20 7.41 11.52 11.52 5.76 Seven-Year 14.29% 24.49 17.49 12.49 8.93 8.92 8.93 4.46