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Use the inforrnation below for questions ( 9 ) to ( 1 3 ) Market Top Investors, Incorporated, is considering the purchase of a $

Use the inforrnation below for questions (9) to (13)
Market Top Investors, Incorporated, is considering the purchase of a $425,000 computer with an economic life of five years. The computer will be fully depreciated over five years using the straight-line method, at which time it will be worth $35,000. Below I arn providing sorne more information about the main characteristics and implications of this project:
The computer will replace two office ernployees whose combined annual salaries are $95,000.
The machine will immediately lower the firm's required net working capital by $40,000.
The computer will allow the company to undertake a diversified set of projects, that will require an investment in inventory equal to $12,000 and a reduction in accounts receivables towards clients equal to $2,000 for each of the 4 years subsequent to year 0(that is the year when the new computer is bought).
Any arnount invested in net working capital will need to be replaced once the machine is sold. The corporate tax rate is 22 percent. The appropriate discount rate is 9 percent.
Compute the After-tax salvage value of the equipment.
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