An asset used in a four$-$year project falls in the five$-$year MACRS class for tax purposes.Depreciation is expressed as a percent of the asset's cost. These schedules are based on the IRS publication $946.$ How to Depreciate Property

and other details on depreciation are presented later in the chapter. Note that five$-$year depreciation actually carries over six years because the

IRS assumes purchase is made in midyear.

The asset has an acquisition cost of $$6,200,000$ and will be sold for $$1,400,000$ at the

end of the project. If the tax rate is $25$ percent, what is the aftertax salvage value of the

asset? Refer to Table $8\mathrm{.}3.($Do not round intermediate calculations and enter your

answer in dollars, not millions of dollars, rounded to $2$ decimal places, e$.$g$.,$

$1,234,567\mathrm{.}89.)$

Aftertax salvage value