This company is at the end of the final year of a project. The equipment originally costed $20,000, which 75% has been depreciated. The firm can sell the used equipment today for $6,000 and its tax rate is 40%. What is the equipments after tax salvage value for use in a capital budgeting analysis? Note that if the equipments final market is value is less than book value the firm will receive a tax credit as a result of the sale.

$5600

$6000

$5000

$6300