our firm needs a machine which costs $100,000, and requires $25,000 in maintenance for each year of its 3 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 21% and a discount rate of 14%. If this machine can be sold for $10,000 at the end of year 3, what is the after tax salvage value?

• $5,854

• $2,590.00

• $7,900.00

• $9,456.10