Compute the tax effect of selling an equipment at end of the project in year $5.$ The equipment costs $$1,000,000$ today and is estimated it can be sold for $$90,000$ at the end of the project in year $5.$ The equipment is considered for tax purposes as a $5-$year MACRS class. The tax rate is $40\%.$ The MACRS table is provided in excel in this problem

Inputs:

r $=10\mathrm{.}000\%$

n $=10$

TVM compounding factors:

FIVF$($n$,$r$)=2\mathrm{.}5937$

FVIFA$($n$,$r$)=15\mathrm{.}937$

TVM discounding factors:

PVIFA$($n$,$r$)=6\mathrm{.}1446$

PVIF$($n$,$r$)=0\mathrm{.}3855$

For your answer round to nearest dollar, do not use commas to separate thousands, do not use the $ sign. If the tax effect is negative $($a cash outflow or tax payment$)$ then enter a negative symbol $(-)$ in front of the first digit. If the tax effect is positive $($a tax credit or cash inflow$)$ then just enter your answer.