Casey Manufacturing Just Purchased Equipment for a New Project That

Casey Manufacturing just purchased equipment for a new project that costs $3 million. The project is expected to last 4 years, and at the end of the project the equipment will be sold at its expected market value of $1.2 million. The equipment will be depreciated on a straight-line basis over 6 years toward a zero book value. If the firm's tax rate is 40 percent, what is the after-tax salvage value of the equipment?

A) $0.98 million
B) $1.02 million
C) $1.12 million
D) $1.20 million
E) $1.28 million