Your firm purchased machinery with a 7-year MACRS life of $100,000. (Depreciation schedule given below).The project however will end after 2 years at which time the equipment will be sold for $45,000. Your firm's tax rate is 40%. What is the after-tax cash flow at the end of the second year?

• Year 1 2 3 4 5 6 7 8

• Depreciation rate 14%25%17%13%9% 9%9%4%