Marshall-Miller & Company is considering the purchase of a new machine for $50,000, installed. The machine has a tax life of 5 years, and it can be depreciated according to the depreciation rates below. The firm expects to operate the machine for 4 years and then to sell it for $2,500. If the marginal tax rate is 40%, what will the after-tax salvage value be when the machine is sold at the end of Year 4? Year Depreciation Rate

1 0.20

2 0.32

3 0.19

4 0.12

5 0.11

6 0.06

a. $4,900 b. $5,488 c. $4,508 d. $4,655 e. $4,998