Problem 12-8 After-Tax Cash Flow from Sale of Assets (LG12-4)

Your firm needs a computerized machine tool lathe which costs $47,000 and requires $11,700 in maintenance for each year of its 3-year life. After three years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 34 percent and a discount rate of 11 percent. If the lathe can be sold for $4,700 at the end of year 3, what is the after-tax salvage value? (Round your answer to 2 decimal places.)