Question 16 Poir Munir S/B has provided the following data concerning a proposed investment project: Initial investment... $861,000 Annual net cash receipts...... $271,000 Life of the project..... 5 years Salvage value. $129,000 The company's tax rate is 30%. For tax purposes, the straight line method will be used and capital allowances (CA)s will be claimed only over 3 years over the entire initial cost without any reduction for salvage value. The company uses a discount rate of 11%. Required: (v) What is the tax incurred on the salvage value in year 5? A. $38,700 B. $4,800 C. $81,300 D. none of the above