An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,170,000 and will be sold for $1,370,000 at the end of the project. If the tax rate is 30 percent, what is the aftertax salvage value of the asset? Refer to Table 10.7

Year - 3year

1- 33.3%

2- 44.45

3- 14.81

4- 7.41

5y

1- 20%

2- 32

3- 19.2

4- 11.52

5- 11.52

6- 5.76

7year

1- 14.29

2- 24.49

3- 17.49

4- 12.49

5- 8.93

6- 8.92

7- 8.93

8- 4.46