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What is the after-tax salvage value

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Your firm needs a computerized machine tool lathe which costs $60,000 and requires $13,000 in maintenance for each year of its 3-year life. After three years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 35 percent and a discount rate of 11 percent.

If the lathe can be sold for $6,000 at the end of year 3, what is the after-tax salvage value? (Round your answer to 2 decimal places.)

Reference no: EM131201902

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