McPherson Company must purchase a new milling machine. The purchase price is $40,000, including installation. The machine has a tax life of 5 years, and it can be depreciated according to the following rates. The firm expects to operate the machine for 4 years and then to sell it for $12,500. 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.	$10,220
	b.	$9,837
	c.	$6,800
	d.	$10,900
	e.	$5,700