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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 $42,000 and requires $11, 200 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 39 percent and a discount rate of 12 percent.

If the lathe can be sold for $4, 200 at the end of year 3. what is the after-tax salvage value? (Round your answer to 2 decimal places.)

Reference no: EM131558574

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