Marshall-Miller & Company is considering the purchase of a new machine for $50,000,installed.The machine has a tax life of 5 years,and it can be depreciated according to the depreciation rates below.The firm expects to operate the machine for 4 years and then to sell it for $12,500.If the marginal tax rate is 40%,what will the after-tax salvage value be when the machine is sold at the end of Year 4?
A)$ 8,878
B)$ 9,345
C)$ 9,837
D)$10,355
E)$10,900

Question

Marshall-Miller & Company is considering the purchase of a new machine for $50,000,installed.The machine has a tax life of 5 years,and it can be depreciated according to the depreciation rates below.The firm expects to operate the machine for 4 years and then to sell it for $12,500.If the marginal tax rate is 40%,what will the after-tax salvage value be when the machine is sold at the end of Year 4? 
A)$ 8,878 
B)$ 9,345 
C)$ 9,837 
D)$10,355 
E)$10,900

Quizplus · Accepted Answer

The Answer of Marshall-Miller & Company is considering the purchase of a new machine for $50,000,installed.The machine has a tax life of 5 years,and it can be depreciated according to the depreciation rates below.The firm expects to operate the machine for 4 years and then to sell it for $12,500.If the marginal tax rate is 40%,what will the after-tax salvage value be when the machine is sold at the end of Year 4? 
A)$ 8,878 
B)$ 9,345 
C)$ 9,837 
D)$10,355 
E)$10,900

Marshall-Miller & Company Is Considering the Purchase of a New