McPherson Company Must Purchase a New Milling Machine

McPherson Company must purchase a new milling machine.The purchase price is $50, 000, including installation.The machine has a tax life of 5 years, and it can be depreciated according to the following rates.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