An investor wants to do capital budgeting for his new investment project. He has the following information:

IRS will allow the investor to depreciate the investment using straight-line over 10 years.

The marginal tax rate will be 15% over the next 5 years & it will be 10% from the 6th to the 10th year. The investor expects that the terminal value for the investment is $20,000 at the end of 4 years.(a 4-year project) What is the after-tax terminal value of this investment if the initial cost is $50,000?

		$18,800
		$21,500
		$19,200
		$21,000