Your company is considering a 10-year project that will generate annual sales of $340,000 and has an annual cash cost of $180,000. The project requires one-time fixed asset investment of $1.3 million at the beginning of the project, which will be depreciated according to MACRS 7-year schedule (See following table). The fixed assets have expected salvage value of $80,000 at the end of the project. What is the after tax salvage value of the project? Tax rate is 21%.

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

		$80,000
		$63,200
		$57,980
		$45,804
		$34,196