(Chapter 9) A textile company invests $10 million in an open-end spinning machine. This was depreciated using the seven-year MACRS schedule which is as follows: year 114.29%, year 2 24.49%, year 317.49%, year 412.49%, year 58.93%, year 68.92%, year 78.93%, and year 84.46%. If the company sold it immediately after the end of year 4 for $7 million, what would be the after-tax cash flow from the sale of this asset, given a tax rate of 40% ? $1,550,400 $3,124,000 $3,876,000 $5,449,600 $6,950,400