Your firm needs a machine which costs $290,000, and requires $44,000 in maintenance for each year of its 3 year life. After 3 years, this machine will be replaced. The machine falls into the MACR'S 3-year class life category. Assume a tax rate of 21% and a discount rate of 12%. If this machine can be sold for $29,000 at the end of year 3, what is the after-tax salvage value?
$22,910.00
$16,976
$7,511.00
$27,422.69