Your Firm Needs a Machine Which Costs $500,000, and Requires

Your firm needs a machine which costs $500,000, and requires $15,000 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 35 percent and a discount rate of 10 percent. If this machine can be sold for $50,000 at the end of year 3, what is the after-tax salvage value?

A) $12,250.00
B) $17,500.00
C) $32,500.00
D) $45,467.50