Use the table below to answer this question.

MACRS 5-year property Year Rate

1 20.00%

2 32.00%

3 19.20%

4 11.52%

5 11.52%

6 5.76%

Ronnie's Custom Cars purchased some fixed assets two years ago for $65,000. The assets are classified as 5-year property for MACRS. Ronnie is considering selling these assets now so he can buy some newer fixed assets which utilize the latest in technology. Ronnie has been offered $34,500 for his old assets. What is the net cash flow from the salvage value if the tax rate is 34 percent?

$33,378.00

$31,200.00

$29,134.80

$34,500.00

$26,588.88