Healthy Eats, a seller of frozen healthy meals, is considering introducing a new vegan meal option. The firm expects that sales of the new vegan option will be $27 million per year, although 31.0% will come from customers who switch to the new vegan options instead of buying the standard options. Healthy Eats will need to upgrade its oven. The existing oven, which has a useful life of 5 years, was purchased at a cost of $16000 3 years ago. The oven is depreciated on a straight-line basis to zero and Healthy Eat's tax rate is 31.0%. The oven can be sold today for $8500.
1. What is the after tax salvage value of the existing oven? (1 mark)
$
(Please round to two decimal places)