What is the expected after-tax cash flow from selling a piece of equipment if XYZ purchases the equipment today for $88,700.00, the tax rate is 25.00%, the equipment is sold in 3 years for $16,600.00, and MACRS depreciation is used where the depreciation rates in years 1, 2, 3, and 4 are 40.00%, 35.00%, 20.00%, and 5.00%, respectively?

$13,559 (plus or minus $10)

$1,394 (plus or minus $10)

$12,450 (plus or minus $10)

$3,326 (plus or minus $10)

None of the above is within $10 of the correct answer