Your firm needs a machine which costs $280,000, and requires $43,000 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 13%. If this machine can be sold for $28,000 at the end of year 3, what is the after tax salvage value?

Multiple Choice

$26,477.08

$7,252.00

$22,120.00

$16,391