Your firm is considering either leasing or buying some new equipment. The lessor will charge $17,500 a year for 3 years should you decide to lease. The purchase price is $61,000. The equipment has a 3-year life after which it is expected to have a resale value of $13,000. Your firm uses straight-line depreciation, borrows money at 9 percent, and has a 34 percent tax rate. What is the after-tax salvage value of the equipment? 1) $8,580 2) $9,701 3) $11,407 4) $18,529 5) $19,697