Question: Vour firm needs a computerized machine tool lathe that costs $ 5 0 , 0 0 0 and another $ 1 2 , 0 0

Vour firm needs a computerized machine tool lathe that costs $50,000 and another $12,000 in maintenance for each year of its three-year uf. After three years, this machine will be replaced. The machine falls into the MACRS three-year class life category. Assume a tax rate of 21 percent and a cliscount rate of 12 percent. If the lathe can be sold for $6,000 at the end of year 3, what is the after-tax salvage value?
Multiple Choice
$3,705.00
$4,344.50
$5.518.05
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Vour firm needs a computerized machine tool lathe

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