Consider an equipment that costs $242,000 and is depreciated straight-line to zero over its seven-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 $55,000. The tax rate is 21 percent. What is the after-tax salvage value?

$63,757.14

b.

$45,500.00

c.

$57,970.00

d.

$53,805.15

e.

$66,242.86