Your firm needs a machine which costs $260,000, and requires $41,000 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 21% and a discount rate of 15%. If this machine can be sold for $26,000 at the end of year 3, what is the after tax salvage value?

• $20,540.00

• $24,585.86

• $15,220

• $6,734.00