Southwest Airlines just bought a new jet for $25,000,000. The jet falls into the 7-year MACRS category, with the following depreciation rates (half-year convention):

Year	1	2	3	4	5	6	7	8
Depr. rate	14.29%	24.49%	17.49%	12.49%	8.93%	8.92%	8.93%	4.46%

The jet can be sold for $20,000,000 after 5 years. The company has a marginal tax rate of 34%.

Part 1

What is the book value at the end of year 5?

Part 2

What is the after-tax salvage value at the end of year 5?