$1$

Your firm needs a computerized machine tool lathe which costs $$50,000$ and requires $$12,000$ 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, and neither bonus depreciation nor Section $179$ expensing can be used. Assume a tax rate of $21$ percent and a discount rate of $12$ percent.

$0\mathrm{.}71$

points

If the lathe can be sold for $$5,000$ at the end of year $3,$ what is the after$-$tax salvage value? $($Round your answer to $2$ decimal places.$)$

$$ Salvage value after tax $$

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