Your firm needs a machine which costs $220,000, and requires $37,000 in maintenance for each year of its 3 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 35% and a discount rate of 16%. If this machine can be sold for $22,000 at the end of year 3, what is the after tax salvage value?

• $14,300.00
• $20,005.70
• $5,698.00
• $10,596