Question: Your firm needs a machine which costs $ 1 2 5 . 0 0 0 and requires $ 5 . 0 0 0 in maintenance

Your firm needs a machine which costs $125.000 and requires $5.000 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 10 percent. If this machine can be sold for $15,000 at the end of year 3, what is the after-tax salvage value?
Multiple Choice
$11,692.69
$9,262.50
$13,795.13
$9,750.00
Your firm needs a machine which costs $ 1 2 5 . 0

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