Question 36 Russell's is considering purchasing $700,000 of equipment for a 4-year project. The equipment falls in the 5-year MACRS class with annual percentages of depreciation expense of 20%, 32%, 19.2%, 11.52%, 11.52%, and 5.76% for Years 1 to 6, respectively. However, Russell will only use and keep the equipment for 4 years. At the end of the 4th year, Russell expects to sell the equipment for $135,000. The required return is 12% and he tax rate is 21%. What is the amount of the after-tax salvage value of the equipment (the expected amount to be received after tax) at the end of year 4? Hint: first find the net book value of the equipment at the end of year 4, then calculate the gain. O $106,650 O $457,442 O $579,040 O $13,402