Your firm needs a machine which costs $210,000, and requires $36,000 in maintenance for each year of its 7 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 7-year class life category. Assume a tax rate of 40% and a discount rate of 15%. If this machine can be sold for $21,000 at the end of year 7, what is the after tax salvage value?

$16,346.40

$11,634.00

$5,620

$12,600.00