An asset used in a three-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $5.4 million and will be sold for $1.2 million at the end of the project. If the tax rate is 35 percent, what is the aftertax salvage value of the asset?

Picture Table 9.7 Modified ACRS depreciation allowances

$780,000

$904,320

$1,075,680

$1,324,320

$1,187,560