Question: Your firm needs a computerized machine tool lathe that costs $50.000 requires $10.000 in Installation, $5.000 in freight charges, and another $12,000 in maintenance for

Your firm needs a computerized machine tool lathe that costs $50.000

Your firm needs a computerized machine tool lathe that costs $50.000 requires $10.000 in Installation, $5.000 in freight charges, and another $12,000 in maintenance for each year of its three-year life. 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 discount rate of 12 percent. If the lathe can be sold for $7.000 at the end of year 3. what is the after-tax salvage value? Multiple Choice $6,499.35 $4,816.50

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