39. Chapter MC, Section .11, Problem 054 McPherson Company must purchase a new milling machine. The purchase price is $50,000, including installation. The machine has a tax life of 5 years, and it can be depreciated according to the following rates. The firm expects to operate the machine for 4 years and then to sell it for $12,500. If the marginal tax rate is 25%, what will the after-tax salvage value be when the machine is sold at the end of Year 4? Year Depreciation Rate 0.20 0.32 0.19 0.12 0.11 0.06 123456 Oa. $10,379 Ob. $11,500 Oc. $9,367 Od. $9,860 Oe. $10,925