A large wine maker would like to buy new stainless steel containers for aging its wine. It is planning to purchase a number of containers for a total of $360,000. They have 8 years of usable life and lose the same value each year. The wine maker will then sell them in 4 years for an estimated $210,000 to replace with brand new ones at that time. The wine maker falls into a 28% tax rate bracket. Calculate the after-tax salvage value at the time the containers will get sold.

First, what is the annual depreciation of the containers? From the table below, the answer is .

1	$80,000
2	$52,500
3	$50,000
4	$45,000
5	$40,000

Second, what is the remaining book value of the steel containers at the time when they will be sold by the wine maker? From the table below, the answer is .

1	$200,000
2	$180,000
3	$160,000
4	$157,500
5	$120,000

Finally, what is the after-tax salvage value of the steel containers? From the table below, the answer is .

1	$437,500
2	$201,600
3	$117,250
4	$113,600
5	$99,900

This implies that this is a _ for the wine maker.

1	tax savings
2	tax liability
3	neither one of the two