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

Multiple Choice

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