Marshall-Miller & Company is considering the purchase of a new machine for $60,000, 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 $15,500.

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? Show your calculations, if any, and explain your answer.

Year	Depreciation Rate
1	0.20
2	0.32
3	0.19
4	0.12
5	0.11
6	0.06