Consider a new plant that costs $1,500,000 and is depreciated straight-line to zero over its 5-year tax life. The asset is to be used in a five-year project. At the end of the project the asset can be sold for $200,000. The tax rate is 28%. What is the after-tax salvage value?

$0

$144,000

$56,000

$200,000

$256,000