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An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,160,000 and will be sold for $1,360,000 at the end of the project. If the tax rate is 35 percent, what is the aftertax salvage value of the asset? (Refer to MACRS schedule below)

Property Class

3-year 5-year 7-year

33.33% 20% 14.29%

44.45% 32% 24.49%

14.81% 19.20% 17.49%

7.41% 11.52% 12.49%

11.52% 8.93%

5.76% 8.92%

8.93%

4.46%

Property Class Three-Year 33.33% 44.45 14.81 7.41 Year Five-Year 20.00% 32.00 19.20 11.52 11.52 Seven-Year 14.29% 24.49 17.49 12.49 8.93 8.92 8.93 4.46 2 4 5 6 7 5.76