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

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 $6,500.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) $8,468
B) $5,986
C) $6,424
D) $7,300
E) $7,884