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Your company bought a new machine for $ 4 5 , 0 0 0 . The machine falls into the 7 - year MACRS category:

Your company bought a new machine for $45,000. The machine falls into the 7-year MACRS category:
A B
1 Year Depr. rate
2114.29%
3224.49%
4317.49%
5412.49%
658.93%
768.92%
878.93%
984.46%
If the company can sell the machine for $18,000 in year 5 and the company's marginal tax rate is 16%, what is the after-tax salvage value in year 5?

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