Kasper Film Co. is selling off some old equipment it no longer needs because its associated project has come to an end. The equipment originally cos22,500, or which 75% has been depreciated. The firm can sell the wred equipment today for $6,500, and its tax rate is 40%. What is the equipment's after tax salvage value for use in a capital budgeting analysis? Note that if the equipment's final market value is less than its book value, the firm will receive a tax credit as a result of the sale 56,150 1 $5,850 0 56,143 0.55558